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 [4]
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 [5]