Bermuda Reinsurance Program
Company: Equitable
Equitable Holdings (EQH) has executed a major reinsurance strategy to reduce mortality risk and unlock capital, including a $32 billion transaction with RGA Reinsurance and the establishment of its own Bermuda reinsurer. By moving 75% of its individual life insurance block to Bermuda, Equitable reduces volatility and frees up over $2 billion for its core retirement and wealth management businesses.
“The Company reinsured approximately $30 billion of group annuity liabilities to its Bermuda entity which will improve the visibility into and consistency of future cash generation.”
Reinsurance Strategy
Transaction with RGA: On July 31, 2025, Equitable finalized a deal with Reinsurance Group of America (RGA) to reinsure 75% of a legacy individual life insurance block ($32 billion in reserves).
Own Bermuda Reinsurer: Equitable established its own Bermuda-domiciled reinsurer in early 2025, allowing for internal reinsuring of liabilities, including a separate $30 billion block of group annuity liabilities.
Capital and Financials: This move generates over $2 billion of value and increases the company's RBC (Risk-Based Capital) ratio to above 500%.
Objective: The shift reduces exposure to mortality volatility and aligns with a, shift toward "capital-light" products, focusing on growth in retirement products and asset management.
Rationale for Bermuda: The Bermuda Monetary Authority provides a favorable regulatory environment and aligns with Equitable's internal economic framework for consistent cash generation.
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Roles and Responsibilities
Co-led cross-functional teams in operational finance to structure and launch a regulated Bermuda offshore entity, supporting global strategy for market expansion and risk management.
Directed end-to-end organizational design activities, including drafting governance frameworks and appointing local directors, to satisfy Bermuda’s legal and compliance requirements.
Oversaw the submission and approval process with Bermuda Monetary Authority and local agencies, ensuring timely incorporation and regulatory certification for business operations.
Coordinated partner, shareholder, and legal communications to facilitate smooth onboarding, operational readiness, and regulatory alignment among international stakeholders.
Implemented financial controls and reporting structures tailored for offshore compliance, enabling transparent operations and annual filings in accordance with Bermuda legislation.