The size of the traditional U.S. life reinsurance market is shrinking, and so is the number of significant players in that market, according to a team of rating analysts at Moody’s Investors Service.
Bob Garofalo and other analysts at Moody’s assessed the U.S. life reinsurance sector in a recent commentary.
The analysts found, after looking at data from the Society of Actuaries (SOA), that the total value of traditional recurring U.S. life reinsurance fell to about $500 billion in 2017, from about $1 trillion in 2002.
The top five players handled about 90% of that business in 2017, up from 66% in 2002.
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Reinsurers are trying to cope with weak demand for traditional U.S. life reinsurance by selling other types of products and services, and by expanding sales of traditional life reinsurance outside the United States, the analysts write.
The top five suppliers of traditional life reinsurance in the U.S. market are now Scor Global Life (US), Swiss Re, Munich Re (US), Reinsurance Group of America, and Hannover Life Re, according to the Moody’s analysis of SOA data..
A reinsurer is an entity that insures a “direct writing” insurer against the direct writer’s own risk.