Apollo Sees Echoes of SVB in US Insurance’s Shift to Caymans

Apollo Global Management Inc. compared the potential risks of some US insurers moving to the Cayman Islands with the swift collapse of Silicon Valley Bank, which triggered a crisis among regional lenders.

The British overseas territory is the “home of regulatory arbitrage,” Apollo said in a presentation Thursday, which said Cayman’s insurance market insufficiently manages risk and doesn’t hold sufficient assets against its liabilities.