Cayman captives go up a gear in 2025

The Cayman Islands’ captive insurance sector has entered 2025 with robust momentum, marked by rising formation activity, expanding balance sheets and increased international engagement, according to industry leaders.

Kevin Poole (pictured), general manager of the Insurance Managers Association of Cayman (IMAC), told Captive Review that the jurisdiction is benefiting from both organic growth and strategic outreach as global awareness of Cayman’s offerings deepens.

Formation activity remains a key indicator of Cayman’s trajectory. By the end of the third quarter, regulators recorded 32 new licensees, including 16 Class B(i) captives, 15 Class B(iii) reinsurance-focused entities and one special purpose Class C vehicle.

More importantly, the pipeline suggests further acceleration: the Cayman Islands Monetary Authority (CIMA) had 19 applications under review and another five approved in principle. If all proceed, Cayman could surpass last year’s 42 formations.

Growth is also evident in sector-wide financials. Premiums increased sharply to $51 billion at the end of Q3 2025, up from $42 billion the previous year. Assets under management rose to $173 billion, with gains spread widely across pure captives, group captives, reinsurance structures and segregated portfolio companies (SPCs).

Cayman now hosts 621 segregated portfolios and 63 portfolio insurance companies, even as the number of SPCs consolidates.

Group captives continue to be a standout story, fuelled largely by mid-market US businesses across transportation, construction, manufacturing and logistics. Poole noted more than 10,000 US participants in Cayman-based group captive programmes, with new entrants from emerging sectors such as last-mile delivery. Leading providers including Captive Resources Insurance, Artex, Cottingham & Butler and Holmes Murphy continue to anchor this growth.

Cayman’s management sector is also expanding, with Blue Ocean, Nascent Insurance Management and Apex Group among recent additions. Meanwhile, IMAC has significantly broadened international outreach, appearing at major industry events including CICA, SIIA, ITC and National Comp. This visibility has already yielded tangible results, including new reinsurer interest.

Reinsurance development remains a strategic priority, supported by strong government engagement and collaboration with the Cayman International Reinsurance Companies Association (CIRCA). Long-term ambitions include securing NAIC qualified jurisdiction status.

Poole also highlighted IMAC’s ongoing scholarship programme, which awarded $483,000 to 17 students this year, underscoring the sector’s wider community impact.

With coordinated industry and government support, Cayman enters 2025 positioned as one of the world’s most dynamic and diversified captive insurance domiciles.

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