Why Annuity Issuers Use Bermuda Reinsurance

Reinsurance helps life insurers transfer risk and release capital. But when it's internal--between affiliates--and the reinsurer is offshore, it's hard to tell if the deal is real or just 'regulatory arbitrage.'
Anecdotal Evidence

RIJ’s Next Phase

By Kerry Pechter
In the near future, I plan to turn the RIJ website into a free library of information on retirement income planning. Before then, I hope to revise 'Annuities for Dummies.'

A Recession’s Threat to Retirees and Near Retirees

By George A. (Sandy) Mackenzie
A recession today could reduce a new retiree's ability to pay for assisted living or nursing care services or long-term care 20 years from now, among other effects, writes our guest columnist.

COVER STORIES YOU MAY HAVE MISSED

June 23, 2022

How Annuity Risks Get Passed to the Bermuda Triangle

By Kerry Pechter
Leading private equity-linked fixed indexed annuity (FIA) issuers ceded the risk (the liability) of 95% of their 2021 sales to the balance sheets of affiliated or co-owned reinsurers located mainly in Bermuda.
June 16, 2022

Why ‘Offshoring’ Annuity Risk Is Wrong

By Tom Gober
Many for-profit US life/annuity companies do not use independent reinsurers. They use an affiliated or captive reinsurer in a jurisdiction like Bermuda, the Cayman Islands, Vermont, or Arizona. This makes their operations less transparent.