Strategic partnerships between re/insurers and alternative investment managers, the use of offshore platforms, and a fourth consecutive record year of annuity sales led to continued reinsurance growth in the U.S. in 2024.
Fitch Ratings expects the prevalence of offshore reinsurance to persist over the near-to-intermediate term, with insurers leveraging reinsurance to support growth and optimize capital. U.S. life insurers’ reserves ceded, measured by reserve credit and modified coinsurance reserves, increased to $2.4 trillion in 2024, from $2.0 trillion in 2023.
Strategic Partnerships
Strategic partnerships between re/insurers and alternative investment managers (Alt IM) have led to an increase in asset intensive reinsurance, mainly to more economic regulatory regimes outside the U.S.
Fitch calculates about 40% of reserves ceded was to an insurer or reinsurer that has some form of Alt IM rela…