Industry Watch: Life Insurance Premiums, Offshore Deals, and Pension Implications

US life insurers ramp up offshore reinsurance amid profit surge – Moody’s

19 Nov 2025

In Q3 2025, U.S. life insurers increasingly relied on offshore reinsurance, particularly in Bermuda, to boost capital efficiency and manage long-term liabilities, Moody’s reported. By the end of 2024, 38% of U.S. life insurers’ $2.4 trillion in reserves were ceded offshore, with Bermuda accounting for 84% of these transfers. Major deals included F&G’s partnership with a Blackstone-backed reinsurer and MetLife’s Chariot Re, moving billions in liabilities offshore. The trend allows insurers to support liabilities with less capital, though Moody’s notes this can be a credit negative. Offshore reinsurance, along with partnerships with alternative asset managers, continues to drive growth in private credit and pension risk transfer markets.

PHL’s $2.2 Billion Hole Exposes Private Equity’s Life Insurance Risk

18 Nov 2025

The Bloomberg article “PHL’s $2.2 Billion Hole Exposes Private Equity’s Life Insurance Risk” highlights the risks of private equity entering the U.S. life insurance sector. PHL Variable Insurance, acquired by Golden Gate Capital, faces a $2.2 billion shortfall, threatening policyholder payouts. Clients, like Jenny Nappo, have received only partial payments after a death due to the insurer’s insolvency. These companies often shift risks to affiliated reinsurers in tax havens, reducing transparency. They invest in higher-risk assets to generate returns, increasing liquidity and solvency risks. The article warns that such models endanger pensions and policyholder savings if asset values fall or reinsurers cannot cover obligations.

Caveats to life insurance stress test results, pension trustees told

17 Nov 2025

UK pension scheme trustees are advised not to make “overly simplistic” comparisons between insurers based on the Prudential Regulation Authority’s (PRA) 2025 life insurance stress test (LIST) results. The test assessed 11 insurers’ resilience to a severe market scenario, covering interest rate drops, falling equity and property prices, and credit events. While insurer-level results, due 24 November, could help trustees evaluate bulk annuity partners, experts caution that the single-scenario test is highly sensitive to investment strategies. Trustees may be better served focusing on the overall strength of the UK insurance capital and solvency regime, which the sector-wide results show is resilient. Comparisons between individual insurers should therefore be made carefully.

Life insurance new premium up 16% in the third quarter, LIMRA reports

12 Nov 2025

U.S. individual life insurance sales remained strong in Q3 2025, with new annualized premiums rising 16% year-over-year to $4.3 billion and policy count up 10%, according to LIMRA. Year-to-date, premiums reached $12.8 billion, a 13% increase, driven by growth across most product lines except fixed universal life. Whole life, variable universal life, and indexed universal life posted notable gains, while fixed universal life sales declined. Term life insurance saw modest growth due to consumer demand and improved distribution. Overall, LIMRA expects positive sales trends to continue through 2025, though growth may moderate in the coming years.