Skadden’s Insurance practice was prominently represented among attendees of ReFocus 2026, underscoring Skadden’s continued commitment to one of the industry’s premier forums for discourse and collaboration. Drawing from conversations at ReFocus 2026 and our observations of current market trends, we have the following five key takeaways for the life and annuity reinsurance sector.
1. The Steady Rise of ‘Flow’ Reinsurance
Flow treaties have become essential tools for capital efficiency, allowing insurers to prospectively allocate risk for new policy production to optimize balance sheet capacity in real time. This structural evolution enables carriers to maintain growth trajectories and enhance policyholder value while providing reinsurers with consistent capital deployment opportunities. We are increasingly seeing these “living treaties” governed by sophisticated co-pricing frameworks, where reinsurers and ceding companies synchronize rates as frequently as weekly to mirror shifting market yields and loss trends. By linking investment strategy to product pricing, these integrated platforms allow insurers to pivot toward capital-light distribution models while ensuring both parties remain agile in a volatile macroeconomic environment.
2. More Reinsurers Look Toward Asia for Opportunities
While Japan remains a cornerstone, reinsurer focus is widening to South Korea and other developed financial centers in East Asia. Offshore reinsurance continues to be attractive to these markets, which are adapting to evolving capital standards in lower-investment-yield environments.
3. The Continued Convergence of Insurance and Asset Management
Private capital managers continue to be attracted by the investment opportunities in insurance and to demonstrate success improving insurer investment returns through repositioning asset portfolios toward alternative investments. Asset managers of all sizes are continuing to look for opportunities through stand-alone management relationships, strategic equity investments and the development of reinsurance platforms. This trend looks to continue to accelerate in 2026 on the heels of the recently consummated strategic investment management partnership between Jackson Financial and TPG.
4. Interest in Strategic M&A
Following notable transactions such as the landmark acquisition of Brighthouse Financial by Aquarian Capital, strategic M&A is now back in the forefront after a number of years where discussions of large-scale block transactions dominated.
5. The Environment Around Captives Is Becoming Even More Dynamic
While Bermuda and Cayman remain top-of-the-list for offshore jurisdictions, insurers have responded to regulatory changes in the U.S. and are increasingly looking to onshore captives to manage capital and reserves.
This memorandum is provided by Skadden, Arps, Slate, Meagher & Flom LLP and its affiliates for educational and informational purposes only and is not intended and should not be construed as legal advice. This memorandum is considered advertising under applicable state laws.