Globe Life Inc. has filed an initial business plan with the Bermuda Monetary Authority (BMA) to establish a new reinsurance affiliate, with the first transaction expected to take place before the end of 2025, according to chief financial officer Thomas Kalmbach.
The plan outlines the reinsurer’s intention to assume a portion of both new and existing life insurance policies issued by Globe Life affiliates. A formal licensing application and updated plan are expected to be submitted to the BMA during the third quarter.
Kalmbach said the affiliate could ultimately reinsure up to 25% of the company's life reserves. While the company does not anticipate any additional cash flows to the parent company from the reinsurer until 2027, Kalmbach noted the entity could eventually generate as much as $200 million in annual cash flow.
"Bermuda's economic capital framework will better support Globe Life's continued sales and premium growth rates," Kalmbach said. "In addition, Bermuda is an established and stable regulatory environment with international insurance experience."
The initial reinsurance deal is expected to cover a limited block of life reserves to initiate operations.
Bermuda has grown into a significant global reinsurance center, holding approximately 35% of the world’s total reinsurance capital. The jurisdiction’s prominence is linked not only to its favorable capital framework and regulatory infrastructure but also to the consistent growth in reinsurer formations and capital inflows.
More than $50 billion in capital has been injected into Bermuda’s life reinsurance sector since 2016. This expansion has been driven by growing demand for asset-intensive reinsurance arrangements, particularly those involving long-duration liabilities.
Recent data also shows that offshore reinsurance has become a central pillar of capital strategy among US life insurers. Around 90% of surveyed executives cited capital efficiency as a key driver for ceding business abroad. Bermuda has led this trend, accounting for more than 40% of total ceded reserves in 2024 and over 60% of new reserve cessions across 2023 and 2024.
Separately, Globe Life reported it has received a letter from the US Securities and Exchange Commission indicating that the agency has concluded its investigation into investor allegations of fraud and misconduct. The company said the SEC does not intend to recommend enforcement action.
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