Overview
The Cayman Islands’ reinsurance sector has expanded sharply, according to 2025 insurance statistics released by the Cayman Islands Monetary Authority and highlighted by Cayman Finance.
Reinsurance company count rose from 58 at the end of 2020 to 113 by the close of 2025. Total sector premiums increased to $30.2 bn, up from $9.3 bn six years earlier.
Assets climbed 341% over the same period, reaching $101 bn compared with $23 bn in 2020. Roughly 90% of Cayman’s reinsurance activity originates from the US and Canada.
Cayman’s growth reflects capital dynamics
Cayman’s growth reflects capital dynamics in North American insurance markets. Domestic capital constraints, especially in life and annuity lines, have driven US insurers to partner with offshore reinsurers able to attract global funding.
Asset managers and private equity sponsors increasingly establish reinsurance platforms in Cayman to deploy capital into long-duration liabilities.
The jurisdiction’s broader financial infrastructure supports that expansion. Cayman hosts more than 30,000 investment funds with approximately $16 tn in assets, linking insurance vehicles to established capital markets expertise.
Number of Cayman Reinsurers
For reinsurers backed by global asset managers, proximity to fund structures reduces operational friction.
Tax neutrality remains central to Cayman’s appeal. The jurisdiction does not impose additional corporate income tax layers on globally sourced premiums or investment returns.
For multinational reinsurance groups, this translates into lower structural costs when pooling cross-border capital.
Operational alignment with US accounting frameworks also plays a role. Certain Cayman insurers may apply US risk-based capital methodologies, US GAAP, or US statutory accounting, reducing duplication for predominantly US-focused businesses.
The latest figures reinforce the rapid growth we’re seeing across the reinsurance sector in Cayman. The jurisdiction has become a domicile of choice for international reinsurers seeking an efficient, well-regulated jurisdiction with English common law certainty and a deep bench of specialist expertise.
Brittany MacVicar, Associate Director for Insurance and Reinsurance at Cayman Finance
“As the global insurance protection gap continues to widen, Cayman is well-positioned to play an increasingly important role in channelling international capital to meet growing demand for insurance and reinsurance capacity. Cayman combines regulatory flexibility with robust oversight, tax neutrality and proximity to the US market with access to global capital,” Brittany MacVicar said.
Cayman’s insurance market
Cayman’s insurance market builds on a 50-year captive sector, now the second largest globally and the largest for healthcare captives. Legal certainty under English common law and political stability as a UK Overseas Territory further reinforce the platform’s positioning.
Regulatory oversight remains structured around a principles-based, risk-sensitive regime aligned with International Association of Insurance Supervisors standards.
Reinsurers must satisfy minimum capital thresholds and risk-based prescribed capital requirements calculated either through standard formulas or approved internal models.
US reinsurance transactions operate under NAIC model law compliance
At least 100% of US statutory reserves tied to Cayman reinsurance arrangements remain held in the US, either on an asset-withheld basis or within regulated reinsurance trusts. This structure provides ceding insurers direct access to collateralized assets.
Internal capital models used in Cayman are calibrated to a 99.5% confidence level, equivalent to a 1-in-200-year loss event.
That benchmark aligns with major regulatory jurisdictions and matches typical US statutory standards.
According to Beinsure analysts, sustained demand for capital-intensive life and annuity reinsurance, coupled with global asset manager participation, continues to drive Cayman’s expansion as an offshore reinsurance hub.
