Globe Life has submitted a preliminary business plan to the Bermuda Monetary Authority (BMA) to establish a reinsurance affiliate later this year.
The company intends for the new reinsurer to assume a share of both newly issued and existing life insurance policies underwritten by Globe Life’s subsidiaries.
A revised proposal and formal licensing application will follow in Q3 2025, with the first transaction expected before year-end.
CFO Thomas Kalmbach stated the affiliate could eventually take on up to 25% of Globe Life’s life reserves. However, the parent company does not expect any material cash flow benefit from the new entity before 2027. Over time, annual returns could reach $200 mn.
Kalmbach cited Bermuda’s economic capital framework as better aligned with the company’s long-term growth targets in premiums and policy sales.
The jurisdiction’s mature regulatory infrastructure and experience in global insurance make it a favorable location. The initial transaction will involve a small block of life reserves as a test phase to operationalize the reinsurer.
Bermuda continues to lead as the dominant offshore hub for life and annuity reinsurance. A Best’s Special Report published June 30, 2025, noted the island accounted for over 40% of total ceded life reserves in force for 2024 and more than 60% of new reinsurance activity across 2023 and 2024.
The jurisdiction has attracted more business due to U.S. annuity growth and regulatory easing in Japan, which has opened new cross-border reinsurance opportunities.
Insurer explained the trend by pointing to rising demand for retirement products. As interest rates increased, consumer expectations shifted after years of near-zero yields, fueling annuity growth and expanding reinsurance demand offshore.
Globe Life also announced a regulatory win: the U.S. Securities and Exchange Commission closed its investigation into investor allegations of misconduct without taking action.
