Cayman Finance, the representative body for the Cayman Islands’ financial services industry, has reported significant expansion in the jurisdiction’s reinsurance sector following publication of the 2025 Insurance Statistics by the Cayman Islands Monetary Authority (CIMA).
Drawing on CIMA’s latest data, Cayman Finance states that the number of licensed reinsurance companies has risen from 58 at the end of 2020 to 113 at the end of 2025, representing an increase of approximately 95%. Over the same period, total premiums written by the sector grew from US$9.3 billion to US$30.2 billion. Total reinsurance assets reached US$101 billion at year-end 2025, up from US$23 billion in 2020, reflecting growth of 341%.
According to Cayman Finance, around 90% of the jurisdiction’s reinsurance business originates from the United States and Canada. The organisation notes that more than 40 representatives from Cayman’s reinsurance industry recently attended the ReFocus conference in Las Vegas, as part of continued engagement with the US market.
Cayman Finance attributes this growth to structural developments within the North American insurance landscape. A shortage of domestic capital, particularly within the life and annuity segments, has increased demand for jurisdictions capable of efficiently deploying international capital into US insurance markets. US insurers have increasingly entered into partnerships with well-capitalised offshore reinsurers to diversify risk and support long-term policyholder obligations.
The organisation reports that the Cayman Islands has attracted a growing number of reinsurance platforms backed by global asset managers and private equity firms. These institutions are playing an expanding role in meeting the insurance industry’s capital requirements, especially in US lending and annuity markets. Cayman Finance also highlights that many of these fund managers already have established operations in the jurisdiction.
As noted by Cayman Finance, the Cayman Islands is the world’s largest offshore funds domicile, with more than 30,000 funds and approximately US$16 trillion in total assets. The organisation states that the connection between the insurance sector and the broader financial services ecosystem supports reinsurers in accessing specialist expertise and international sources of capital.
Cayman Finance further points to the jurisdiction’s tax-neutral framework and proportionate fee structure as factors supporting cross-border reinsurance arrangements. While certain jurisdictions have introduced corporate taxation, the Cayman Islands maintains a model designed to avoid imposing additional layers of tax on internationally sourced premiums and investment returns. According to Cayman Finance, this environment can contribute to lower operating costs for multinational reinsurance groups and asset managers.
From an operational perspective, Cayman Finance notes that, in certain cases, Cayman-based insurers may apply US risk-based capital methodologies, US GAAP and/or US statutory accounting standards. The organisation states that this alignment can reduce regulatory duplication, streamline reporting requirements and limit operational complexity for insurers with a predominantly US focus.
Cayman Finance also emphasises the jurisdiction’s legal and regulatory foundations, including its basis in English common law, political and economic stability as a UK Overseas Territory, and an established network of experienced service providers across insurance, legal, actuarial, accounting and fiduciary disciplines. Insurance expertise in the Cayman Islands has developed over five decades through its captive insurance sector, which is the second largest globally and the largest for healthcare captives.
The organisation underscores that sector growth has been accompanied by policyholder protections. US reinsurance agreements must comply with model laws established by the National Association of Insurance Commissioners governing co-insurance arrangements. Cayman Finance describes this as a dual regulatory framework under which both US regulators and CIMA oversee compliance to help ensure that policyholder funds remain protected.
Cayman Finance explains that a minimum of 100% of US statutory reserves arising from reinsurance transactions between US cedents and Cayman reinsurers are held in the United States, either on an asset-withheld basis or within reinsurance trust accounts administered by regulated US-based trustees. This structure provides ceding insurers with direct access to the assets and mitigates counterparty risk.
CIMA operates a principles-based, risk-sensitive regulatory framework aligned with standards set by the International Association of Insurance Supervisors. Reinsurers are required to satisfy both minimum capital requirements for licensing and prescribed risk-based capital thresholds, calculated using either a standard formula or an approved internal model. CIMA may also apply an operating target level tailored to the specific risk profile of an individual reinsurer.
Where internal capital models are used, Cayman Finance states that they are calibrated to a 99.5% confidence level, equivalent to a one-in-200-year loss event. This benchmark aligns with, or exceeds, typical US statutory standards and is comparable to requirements in other major insurance jurisdictions. The alternative standard formula applies risk-based charges across premiums, reserves, catastrophe exposures and asset classes, tested at the same confidence level applied in the United States.
Brittany MacVicar, Associate Director for Insurance and Reinsurance at Cayman Finance, added: “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.
“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.”
