The Financial Times is reporting that US life insurers now have offshore reinsurance liabilities of more than a trillion dollars and that more than “$130 billion of liabilities [were] offloaded in 2024, despite regulatory concerns”.

Under an aerial photograph of Bermuda, a caption reads: “Scrutiny by regulators intensified last year after the meltdown of 777 Re, a private equity-owned Bermudian reinsurer.”

The article centres on the concern raised by US regulators and credit rating agencies warning of rising risks, with questions about whether the reinsurers have adequate assets to back up their promises to policyholders.

Companies with a substantial presence in Bermuda are named, as the focus on the US life insurance industry raises concerns about protections for retirement savings and broader financial stability.

“Private capital-owned groups such as Apollo’s Athene and KKR’s Global Atlantic, as well as traditional insurers such as Prudential and MassMutual, last year moved more than $130 billion of liabilities to offshore reinsurers, primarily based in Bermuda,” the article reads, citing a recent report from S&P Global Market Intelligence.

The concerns have spread beyond Bermuda’s borders.

James Belardi, the chief executive of Athene, warned recently of the unabated growth in the Cayman Islands, where he said a fraction of the required capital for Bermuda or the US was being used to support $150 billion in insurance reserves.

The FT reported the S&P research that found total reserves ceded by US life insurers and annuity providers to reinsurers, including offshore groups, grew to more than $2.4 trillion at the end of last year.

The Bermuda Monetary Authority and the US National Association of Insurance Commissioners have put in place new initiatives including new reporting requirements on the investment portfolios of insurers.