The Impact of APAC Capital in US/Bermuda Life and Annuity Markets

by Taylor Dever

Private equity has played a leading role in the life and annuity industry over the past decade, and for good reason. PE-backed insurers and asset manager partnerships have reshaped product design, investment strategy, and operating models across the US and Bermuda markets.

However, another capital force, while not new to the space, is continuing to grow in influence and may play a significant role in shaping the next phase of the industry: APAC insurers, particularly Japanese carriers.

Structural Drivers Behind APAC Expansion

Over the past several years, Japanese and broader APAC insurers have continued to expand beyond their domestic markets. Some of the structural drivers include:

• Aging populations and relatively flat domestic policyholder bases
• Historically low domestic interest rate environments
• Strategic objectives for geographic and asset diversification

This expansion is playing out through direct investments in US insurers (see Meiji Yasuda/Banner Life and Nippon/Resolution), strategic reinsurance partnerships, and increased use of Bermuda as a global capital deployment platform.

Many Bermuda reinsurers are actively targeting APAC liabilities for future transactions, making this an increasingly competitive segment.

Why Bermuda Continues to Play a Central Role

Bermuda has become a key connector between global capital and US insurance liabilities. Many APAC insurers leverage Bermuda platforms because of:

• A flexible, yet well-established regulatory framework
• Proximity and access to US annuity and PRT markets
• A mature ecosystem of talent and service providers

This has continued to strengthen Bermuda’s position as a link between US, APAC, and broader global insurance markets. While Cayman could play a role in the future, APAC carriers have so far largely favored Bermuda for offshore reinsurance structures.