Bermuda insurance sector sees continued growth in 2017

Bermuda registered 58 new insurers in 2017, ranging from captives and long-term re/insurers to special purpose insurers (SPIs), compared to 42 last year, according to statistics released by the Bermuda Monetary Authority (BMA). “We’re delighted to see an overall increase of 38% in licensed insurance carriers in Bermuda last year,” said Grainne Richmond, president of the Bermuda Insurance Management Association. “Of the 58 new licences issued, 17 are in the limited purpose/captive space. We’re not surprised by the continued confidence stakeholders place in the overall Bermuda insurance product, and we’re particularly pleased to see the increase in captive registrations. This continued growth highlights how important Bermuda’s captive offering is in the global arena where our experience, pragmatic regulation, professionalism and integrity continue to set Bermuda apart from competing jurisdictions.” At the end of last year, 739 active captive licences were on the BMA register, including 17 new entities, compared to 13 in 2016, and Bermuda captives wrote $54.7bn in net premiums. Bermuda issued 24 SPI licences in 2017, seven more than the previous year, with reinsurance covers consisting primarily of cat bonds, collateralised reinsurance and sidecars. The Bermuda Stock Exchange (BSX) was the listing venue of choice for insurance-linked securities (ILS) vehicles. “New ILS listings on the BSX totalled 103 securities for the year, with a nominal value of $11.54bn,” said Greg Wojciechowski, BSX president and CEO, and ILS Bermuda chair. “This represents annual growth of 69% in the number of new securities listed, and 87% growth in the nominal value.” He pointed out that at the end of 2017, the total number of BSX-listed ILS securities stood at 227, valued at $25.99bn. “Bermuda’s global market share reached record levels of approximately 84%, cementing Bermuda’s continued position as leader in this innovative asset class,” said Mr Wojciechowski. “The devastating natural catastrophe events in 2017 demonstrated Bermuda’s resilience, tried-and-tested infrastructure, as well as expertise in the property and casualty space.” One new Class 4 commercial reinsurer was formed in Bermuda in 2017: Premia Re, a property/casualty reinsurance run-off group. The Bermuda Business Development Agency (BDA) will continue to lead aggressive business development efforts overseas, particularly in Canada and major markets across the US, according to BDA business development manager Jereme Ramsay. “So far this year, insurance registrations are already off to a solid start, with four new formations, including a captive, an SPI, a life company and small commercial insurer,” said Mr Ramsay. “2017 was a strong year, and the first quarter of 2018 appears to be following suit. We’re optimistic for what’s to come.” Six long-term insurance companies, one Class C and five Class E companies, were licensed by the BMA in 2017, compared with three registrations in 2016. “Long-term re/insurers provide significant diversification for the Bermuda economy, since we are affected by a different set of drivers than property and casualty re/insurers,” said Sylvia Oliveira, board director, Bermuda International Long Term Insurers and Reinsurers. “Our markets keep expanding as ageing populations seek to protect assets during retirement and for their heirs.”

Bermuda insurance sector sees continued growth in 2017

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