Bermuda’s insurance industry registered a total of 58 new insurers, ranging from captives and long-term re/insurers to special purpose insurers (SPIs), compared to 42 in 2016, according to Bermuda Monetary Authority (BMA) statistics.
Of this figure, 17 new captive licenses were registered as of December 31, 2017, compared to 13 in 2016. Bermuda captives collectively wrote $54 billion in net premiums in 2017.
According to the BMA, this is against a backdrop of challenging market conditions globally, including mergers and acquisitions activity and consolidations.
"The BMA figures reaffirm Bermuda's status as the 'world's risk capital' and also underscore the breadth of our risk-solutions market, as well as the innovation and expertise that distinguish the island as a centre of excellence across each risk sector," said Bermuda Business Development Agency (BDA) CEO Ross Webber. "Most importantly, this trend, encouraged by our business-development efforts, is creating much-needed jobs that help fuel economic growth."
Furthermore, the BDA highlighted that risk sector companies were responsible for 61 corresponding new jobs, including 20 in the life and annuity sector.
Grainne Richmond, president of the Bermuda Insurance Management Association (BIMA), added: "We're delighted to see an overall increase of 38 percent in licensed insurance carriers in Bermuda last year. Of the 58 new licences issued, 17 are in the limited purpose/captive space.”
She continued: ”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."
Bermuda also experienced significant growth in the life sector in 2017, with six long-term insurance companies, one Class C and five Class E companies, licensed by the BMA. That compared with three 2016 registrations. With incorporations of companies such as Monument Re, Athora Life Re, Allianz Re Bermuda Life, Langhorne Re, and Private Bankers Life & Annuity Co, the sector generated at least 20 new jobs in Bermuda.
BDA business development manager Jereme Ramsay commented: "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. 2017 was a strong year, and the first quarter of 2018 appears to be following suit. We're optimistic for what's to come."
Bermuda, BMA, BDA, Captive insurance, Captive statistics