The U.S. offshore non-life reinsurance market
The figures reported consequently refer only to reinsurance premiums ceded outside the country. Outbound cessions reached USD 76 billion in 2020.
Compared to 2016, ceded premiums decreased by -9% at the end of 2020. Direct premium cessions to foreign reinsurers are extremely atomized. The 76 billion USD of "exported" premiums in 2020 are accepted by 4 449 reinsurance entities spread over 100 countries. This broad risk pooling originates from the nature of American cessions dominated by natural catastrophes, pension funds and special risks.
Read also | The U.S. non-life reinsurance market
Breakdown of U.S. reinsurance cessions country
The top five countries below account for 84% of total foreign reinsurance premiums ceded by U.S. insurers in 2020.
Bermuda is the leading foreign market with 37% of cessions. The premiums accepted by this British territory amounted to 28.1 billion USD in 2020.
Switzerland came in second place with 12.9 billion USD of direct premiums and 17% of reinsurance cessions. The German market, in third place, has underwritten 13% of premiums.
Figures in millions USD
| Countries | Premiums | 2020 shares |
|---|---|---|
| Bermuda | 28 299 633 | 37% |
| Switzerland | 12 948 983 | 17% |
| Germany | 9 608 487 | 13% |
| United Kingdom | 6 497 859 | 9% |
| Cayman Islands | 6 286 878 | 8% |
| Total top 5 | 63 641 840 | 84% |
| Others | 12 467 358 | 16% |
| Total | 76 109 198 | 100% |
Source: RAA Offshore Report 2020
American authorities classify offshore reinsurers into two categories; the Unaffiliated Offshore reinsurers and the Affiliated Offshore reinsurers.
Offshore non-life reinsurance market: breakdown of premiums ceded abroad per type of offshore company
Figures in millions USD
| Year | Total premiums ceded | Premiums ceded to Unaffiliated Offshore Reinsurers | Premiums ceded to Affiliated Offshore Reinsurers | Number of Offshore Reinsurers | Number of Countries |
|---|---|---|---|---|---|
| 2020 | 76 109 | 50 041 | 26 068 | 4 449 | 100 |
| 2019 | 76 449 | 47 083 | 29 365 | 4 372 | 100 |
| 2018 | 68 533 | 46 005 | 22 529 | 4 448 | 108 |
| 2017 | 84 941 | 36 638 | 48 302 | 4 229 | 108 |
| 2016 | 83 671 | 34 652 | 49 019 | 4 226 | 104 |
Source: RAA Offshore Report 2020
The U.S. non-life reinsurance market : affiliated offshore reinsurers
Affiliated Offshore reinsurers are companies based abroad, accepting risks from U.S. or U.S.-owned affiliated of these same groups. The number of these companies is 202. They accounted for 35% of the premiums ceded abroad in 2020, amounting to 26.068 billion USD.
This market is dominated by Bermuda with almost 53% of acceptances. The British market is absent from this segment where the Swiss are in second place, after Bermuda.
Between them, Bermuda and Switzerland concentrate 79.8% of the Affiliated Offshore reinsurers, that is, 20.5 billion USD.
Premiums ceded to affiliated offshore reinsurers per region
Figures in millions USD
| Countries | 2016 | 2017 | 2018 | 2019 | 2020 | 2020 share | 2016-2020 Evolution |
|---|---|---|---|---|---|---|---|
| Bermuda | 24 770 | 26 438 | 16 203 | 16 748 | 13 622 | 52.3% | -45.0% |
| Switzerland | 15 243 | 13 817 | 686 | 7 733 | 6 901 | 26.5% | -54.7% |
| Ireland | 104 | 491 | 57 | 64 | 1 222 | 4.6% | 1 075.0% |
| Cayman Island | 1 401 | 1 262 | 869 | 1 215 | 1 077 | 4.1% | -23.1% |
| Germany | 3 706 | 2 510 | 2 275 | 975 | 925 | 3.5% | -75.0% |
| Japan | 480 | 399 | 626 | 537 | 692 | 2.7% | 44.2% |
| Turks and Caicos Islands | 495 | 567 | 574 | 551 | 475 | 1.8% | -4.0% |
| France | 735 | 1 039 | 379 | 246 | 435 | 1.7% | -40.8% |
| Spain | 534 | 526 | 126 | 225 | 246 | 1.0% | -53.9% |
| Canada | 115 | 114 | 145 | 166 | 117 | 0.4% | 1.7% |
| Autres countries | 1 436 | 1 139 | 589 | 905 | 356 | 1.4% | -75.2% |
| Total | 49 019 | 48 302 | 22 529 | 29 365 | 26 068 | 100.0% | -46.8% |
Source: Atlas, RAA Offshore Report
The U.S. non-life reinsurance market: unaffiliated offshore reinsurers
These are independent (non-US) companies. They accepted 65% of the American premiums ceded abroad in 2020, amounting to 50.041 billion USD.
Premiums ceded to unaffiliated offshore reinsurers per region
Figures in millions USD
| Countries | 2016 | 2017 | 2018 | 2019 | 2020 | 2020 share | 2016-2020 Evolution |
|---|---|---|---|---|---|---|---|
| Bermuda | 10 176 | 10 954 | 12 962 | 13 597 | 14 677 | 29.3% | 44.23% |
| Germany | 4 231 | 4 584 | 6 801 | 7 422 | 8 683 | 17.4% | 105.22% |
| United Kingdom | 5495 | 5622 | 8 391 | 6 490 | 6 498 | 13.0% | 18.25% |
| Switzerland | 4 835 | 5 079 | 5 978 | 6 355 | 6 048 | 12.1% | 25.09% |
| Cayman Islands | 3 955 | 4 097 | 4 306 | 4 604 | 5 210 | 10.4% | 31.73% |
| Turks and Caicos Islands | 1600 | 1 736 | 2138 | 2 333 | 2618 | 5.2% | 63.63% |
| Ireland | 502 | 558 | 607 | 766 | 825 | 1.6% | 64.34% |
| Barbados | 597 | 65 | 757 | 729 | 731 | 1.5% | 22.45% |
| China | 171 | 224 | 366 | 560 | 714 | 1.4% | 317.54% |
| India | 82 | 120 | 158 | 283 | 558 | 1.1% | 580.49% |
| Other countries | 3 008 | 3 013 | 3 541 | 3 944 | 3479 | 7.0% | 15.7% |
| Total | 34 652 | 36 638 | 46 005 | 47 083 | 50 041 | 100.0% | 44.4% |
Source: RAA Offsshore Report 2020
Read also | USA: Property and casualty insurance
