Fitch Issues Bermuda (Re)insurance Report
Fitch Ratings today [Jan. 19] has published a special report analysing recent trends in the Bermuda (re)insurance marketplace.
The international ratings agency anticipates Bermuda’s (re)insurance market will remain strong with 2010 results expected to be favourable, capping five consecutive years of operating success since significant losses in 2005 due to Hurricanes Katrina, Rita and Wilma.
However, Bermuda’s top-line results are suffering as insurers have ceded less business during the soft market and organic opportunities diminish with generally weak economic conditions reducing insured exposures. This reduced demand adds to the market’s excess capacity and further intensifies the competitive landscape.
Specific topics discussed in this report include: Key issues affecting the Bermuda (re)insurance market in 2011; factors that could put upward or downward pressure on ratings; the market’s 2010 financial performance.
“The universe of Bermuda market (re)insurers covered in this report includes organizations that write both primary insurance and reinsurance business,” said Fitch in a media bulletin. “These companies insure exposures worldwide, although the majority of their business is derived from exposures in the US.
“Fitch’s rating outlook is stable on both the US primary market and the global reinsurance sector, and includes Fitch’s coverage of Bermuda market (re)insurers.”
The ”Bermuda 2011 Market Update” report is available here.
