The amount of reinsurance ceded offshore by US insurers increased again in 2013 with Bermuda the most common domicile for offshore reinsurers used. Proportionally, the usage of unaffiliated reinsurers by US insurers also increased more.
According to data from the Reinsurance Association of America (RAA), some 3,395 different offshore reinsurers assumed premium in 2013 spread across 108 different countries. The total amount of business ceded was $65.7 billion, a 3.2 percent increase on the $63.7 billion the year before.
Net recoverables to all offshore reinsurers in the period 2013 fell slightly, by 3 percent, to $111 billion.
The usage of unaffiliated reinsurers by US cedants increased by 6 percent to $28.3 billion. Reinsurance recoverables to this group of players remain flat at $36.2 billion.
The usage of affiliated reinsurers grew by 1.2 percent to $37.3 billion. The level of reinsurance recoverables to this group fell by 4.4 percent to $74.8 billion.
The most common domicile for offshore reinsurers was Bermuda. It topped the table in terms of the unaffiliated reinsurers used with $9.6 billion of premiums being ceded to players based there. The next most common domicile for unaffiliated reinsurers was the UK with $4.7 billion of premiums ceded to companies based there.
In terms of affiliated players, some $22.5 billion of premiums were ceded to Bermuda-based players. The next most common domicile was Switzerland with $10.4 billion of premiums ceded to reinsurers based there.
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RAA, North America, Bermuda, Europe, Reinsurance Association of America