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

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

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.


June 23, 2022

How Annuity Risks Get Passed to the Bermuda Triangle

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

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.