KBRA releases a report which notes that the global life reinsurance landscape is one of exciting growth that is also tempered by a healthy dose of caution. While it appears that the excess mortality experienced during the pandemic has subsided, growth in asset-intensive reinsurance continues to accelerate which, we believe, is unlocking substantial pools of capital seeking attractive, uncorrelated returns to better address the retirement savings gap. Further, as the retirement savings gap is fueling new business volumes for primary insurers and, in turn, driving demand for asset-intensive (e.g., annuity) reinsurance across geographies, KBRA views this as a global phenomenon, with Bermuda playing a particularly prominent role.

In this report, we highlight five trends to watch that we believe will shape the industry, and review each of the key implications to the credit profile of the sector.

Key Takeaways

• As morbidity and mortality revert to historical averages globally, the industry is poised to generate higher returns from its core life insurance portfolio while having a mixed impact on annuity books—although, overall, total earnings will remain sensitive to trends in long-term interest rates.
• Demographic trends combined with a global retirement savings gap remain tailwinds for the sale of life and annuity products, which will push ongoing demand for reinsurance.
• Ongoing evolution of regulatory frameworks and solvency regimes reflect an underlying increase of scrutiny by various jurisdictions in response to rapid growth of alternative assets in the context of rising scope and scale of cross-border reinsurance.
• Given its adaptive and responsive regulatory framework, Bermuda has emerged as a leading jurisdiction for asset-intensive reinsurance, which has resulted in favorable solvency trends for insurers operating in that locale.
• While recent headlines have focused on the risks associated with private credit, insurers with robust risk and asset/liability management frameworks are positioned to capitalize on the market’s rapid growth, which is expected to remain a meaningful source of long-term value in meeting policyholder obligations.

Click here to view the report.

Related Publications

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• The Forward Look—U.S. Credit Insights Q4 2025
• The Forward Look—European and UK Credit Views: Q4 2025

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1013023

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