Globe Life Inc. has created Globe Life Re Ltd., a Bermuda‑based Class C insurer, to provide quota‑share reinsurance for policies written by its affiliate entities. The move, announced on December 23 2025, allows the company to cede a proportional share of risk on selected policies and to operate under Bermuda’s favorable economic‑capital framework.
The new affiliate will assume a proportional share of risk on specified insurance policies, enabling Globe Life to optimize its capital allocation. By shifting risk to the Bermuda entity, the company can reduce its on‑balance‑sheet exposure and free capital that can be deployed to fund share‑repurchase programs and support future growth.
Globe Life’s CFO Thomas Kalmbach said the reinsurance vehicle could generate as much as $200 million in annual cash flow beginning in 2027. The incremental cash flow is expected to arise from the reinsurance premiums earned on the ceded policies, offset by the cost of reinsurance and regulatory compliance.
The reinsurance arrangement is part of a broader strategy to strengthen the company’s capital position after a period of regulatory scrutiny. In 2024, Globe Life faced allegations of misconduct that briefly weighed on its stock, but the U.S. Attorney’s office has since closed the investigation, removing a significant overhang.
Analysts view the Bermuda affiliate as a standard industry practice that enhances capital efficiency. By leveraging Bermuda’s well‑established regulatory environment, Globe Life can maintain its strong underwriting margins while reducing the capital required to support its life‑insurance book.
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