BMA: “Market Remained Resilient”

February 22, 2012

The Bermuda Monetary Authority said the Bermuda insurance market “remained resilient in 2011 and continued to absorb the impact of market issues, including a continued softening of prices, low interest rates and above-average losses from natural catastrophes.”

With respect to 2011 registrations, the Authority registered a total of 54 new Bermuda insurers, up from the 36 recorded in 2010. Growth in the registration of Special Purpose Insurers (SPIs) has continued: 23 new SPIs were licensed in 2011, up from eight the previous year. 2011 also saw the formation of two Class 4 reinsurance companies.

Shelby Weldon, Director, Insurance, Licensing & Authorisations said, “2011 was certainly a challenging year, which was reflected in the year-end results of some firms. However, Bermuda’s insurers are successfully addressing global market conditions.

“Also, Bermuda’s commitment to achieving equivalence with relevant standards globally continues to attract quality businesses that see the benefits of being based in a practical, first league regulatory environment that is well-regarded in key international markets.”

“The latest available statistics show the Bermuda insurance market achieved significant premium volumes and healthy amounts of assets and capital and surplus,” Mr. Weldon said.

“The market recorded gross premiums written of $107.7 billion; this compares to $119.7 billion written the previous year, not surprisingly reflecting the challenges of a prolonged soft market. In addition, the market recorded aggregate total capital and surplus of $185.2 billion and assets of $524.7 billion, year-on-year increases of 1.7 per cent and 5.8 per cent respectively.”

Commenting on the market’s business volumes by sector, Mr. Weldon said, “The commercial sector wrote a consistent amount of gross premiums, $86.3 billion compared to $87.1 billion the previous year. Total assets were $438 billion, up 16.5 per cent year-on-year. Capital and surplus was also up, by 10.5 per cent, from $131.8 billion to $145.6 billion.”

“Bermuda captives also maintained high business volumes, and there were a total of 862 captives registered in Bermuda at the end of 2011, up from 845 in 2010,” Mr. Weldon continued.

“Captives wrote a total of $21.4 billion in gross premiums, compared to $32.7 billion the previous year. This change can be attributed to a combination of the Authority’s continuing reclassification of a number of companies to more accurately reflect their risk-profiles, as well as a decrease in premiums written by particular firms within the sector.”

Mr. Weldon concluded, “Bermuda’s insurance market continues to manage the impacts of the global economy and market conditions effectively. Bermuda is a unique jurisdiction providing leadership across the spectrum of insurance risk management: captives, insurance and reinsurance.

“This reinforces Bermuda’s position as a leading domicile for insurance business along with other core elements of our success – such as disciplined underwriting by firms and a pragmatic regulatory environment with world class standards that supports quality business.”

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  1. Eastern says:

    When are insurance companies going to stop referring to payouts for catatrophies as a “loss”? These aren’t losses, they payouts to settle their obligations to their clients. This is why they are in business and this is why businesses and individuals pay them their premiums. Stop whining and meet your OBLIGATIONS to your clients or get out of the insurance business.