Each year the Reinsurance Association of America (RAA) provides an overview of the countries from which U.S. insurance companies obtain reinsurance, i.e., the countries to which they have ceded, or transferred, some of their risk. The analysis includes premiums that a U.S. insurance company cedes to offshore, i.e., foreign, reinsurance companies that are not part of the insurer’s own corporate group (unaffiliated offshore reinsurers in the chart below), as well as business ceded to overseas reinsurers that are part of the insurer’s corporate family (affiliated offshore reinsurers in the chart below).
The RAA report, Offshore Reinsurance in the U.S. Market, compares U.S. insurance premiums ceded to U.S. professional reinsurance companies to the U.S. premiums ceded to offshore (foreign) companies. U.S. professional reinsurance companies accounted for 34.3 percent of the U.S. premiums written that was ceded in 2018, while offshore companies accounted for 65.7 percent. However, many U.S.-based reinsurers are owned by foreign companies. Taking this into consideration, offshore or foreign owned U.S. reinsurers accounted for 88.9 percent of premiums assumed in 2018, while U.S. professional reinsurers accounted for 11.1 percent.