Bermuda Offshoring Could Make Annuity Issuers Look Too Good: Moody’s
June 1, 2023 by Allison Bell
Some U.S. life insurers use reinsurance from providers based in Bermuda and other offshore jurisdictions to cut the amount of capital supporting their products, invest the capital more aggressively and come away with nicer-looking risk-based capital ratios, according to a team at Moody’s Investors Service.
Bob Garofalo and other analysts at Moody’s have prepared a new report, backed with a close look at the regulations in Bermuda and other offshore jurisdictions, and detailed financial figures, to address a concern that insurance agents, regulators and others have been talking about for several years: whether the flurry of announcements about life insurers working with offshore reinsurers, and setting up their own offshore reinsurers, is something to worry about.
Click HERE to read the full story via ThinkAdvisor
