91 New Insurance Companies Register In 2013

January 20, 2014

DSCF3558Bermuda registered 91 new insurance companies in 2013, according to annual insurer registration statistics released today [Jan 20] by the Bermuda Monetary Authority. This represents a 72 percent increase on the 53 firms registered in 2012.

The new firms covered both the traditional and fast-growing alternative risk transfer sectors of the insurance market. In addition, the number of new captives registered in 2013 doubled the totals recorded in 2012.

The new companies registered in 2013 covered all classes of insurer. There were 24 new captives, 16 commercial insurers, and a record 51 SPIs. This compares to 12 new captives, 14 commercial insurers, and 27 SPIs being recorded the previous year.

Commenting on the new registrations, Jeremy Cox [pictured], CEO of the Authority said, “Achieving this level of business in today’s competitive environment reinforces Bermuda’s unique ability to service the full spectrum of high-end, global insurance business.

“It also demonstrates the continued relevance of Bermuda as a jurisdiction as the market seeks diversification in risk transfer, with alternative products increasingly complementing traditional reinsurance.

“The new registrations include significant firms in the traditional reinsurance space, including a Class 4 reinsurer,” Mr. Cox explained. “We also saw additional core business in the form of the 24 new captives registered during the year, building further on Bermuda’s leadership position in that sector.”

Mr. Cox also noted the record number of Special Purpose Insurers registered last year, reflecting in particular how Bermuda has emerged as a leading jurisdiction for the creation, listing, and servicing of insurance-linked securities [ILS]. By the end of 2013, out of the $21.0 billion of global ILS issuance, $9.2 billion was sponsored by Bermuda-based SPIs, representing 41% of the world-wide stock of ILS.

“The 51 new SPIs set up last year almost doubled the 2012 total, a remarkable achievement,” he said.
“This reflects to a great degree the significant work Bermuda’s industry service providers and the Bermuda Stock Exchange conducted during the year to promote Bermuda as the premier jurisdiction for ILS.

“Data from the Authority’s new Bermuda ILS Report issued late last year also highlighted that Bermuda has been successful in broadening the type of business being covered, as well as becoming the leading jurisdiction for ILS transactions. This would include traditional cat bonds, property and property catastrophe, along with other shorter-term risks.

“Therefore, Bermuda has been able to build on our long-standing experience in insurance regulation and
alternative risk transfer to create innovative opportunities for both investment and capital development,
primarily for the US and European markets. Bermuda has balanced this with building further on the captive and commercial insurance platforms that have enabled business to grow here over many decades.

“We look forward to seeing another successful year of new registrations in 2014.”

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Comments (26)

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  1. New Company Registrations A “Positive Sign” | Bernews.com | January 28, 2014
  1. Rhonda Neil says:

    great stuff these instrument where not created in 2013.. it is a growing industry…glad to see Bermuda getting its share…

    I pray the regulators know enough about this..”fast-growing alternative risk transfer sectors of the insurance market.” re if there could be any fallout to Bermuda..

  2. watching says:

    Great news in the form of taxes and licensing fees, but only 1 Class 4 insurer means that the rest of these companies are only shell companies and will provide no real tangible effect on peoples’ lives. Couple that with the fact that most existing companies have made many redundancies and have streamlined their processes and cut Bermudians out, this news hardly does anything much for the economy.

    • Kangoocar says:

      Typical response from a plp talking head!!! You do realize that these companies pay fees to our government don’t you??? Any foreign money being brought here is a good thing!! You just can’t give credit to anything but the plp can you???

    • campervan says:

      They are not “only shell companies” they don’t run themselves and equate to more boots on the ground.

      To illustrate it another way, if all these “shell companies” were to have been formulated in Cayman, you would see an uptick of workload and employment there and a decrease here.

      • watching says:

        Ok…point taken…so they may employ a few people…but i bet those employed will not come from the many unemployed.

        • campervan says:

          From the unemployed? Indirectly and possibly directly yes.
          Example, the company will be utilising local underwriting, or even have their own dedicated underwriter. They may or may not be Bermudian (there are plenty of Bermudian underwriters)
          That will entail support (P.A. etc)
          This underwriter may, or may not require the services of a cleaner, nanny, mechanic.
          Multiplier affect will mean services from all walks of life will be required.

          Once again these are not shell companies.
          Don’t be so quick to dismiss a source of employment and revenue for the Island.
          There are other jurisdictions chomping at the bit to take a piece of the action. Malta has started the ball rolling to attract SPI’s.
          Nurture what we have.

          • James says:

            Oh Yes—Trickle down economics –Please stop with he BS.

            • Mike Hind says:

              You might want to look up what that phrase means.
              I don’t think you’re talking about the same thing.

            • Lois Frederick says:

              What campervan described above is the basis of how Bermuda’s economy works, like it or not.

        • Mike Hind says:

          So… they’re going to hire people that already have a job?

          So, if we take your scenario as true, then either they’ll be doing the same job twice… at the same time – which I highly doubt – or they’ll be leaving their present job to go to the new one, which means their position is open to “the many unemployed”.

          I know you want to downplay this, as it’s more jobs and that’s anathema to you guys, but “those employed will not come from the many unemployed” is either ridiculous or code for something.

          • theothersidebda says:

            Actually, in a way yes, more work for those currently employed….

            Most of these vehicles (captives and SPIs) are limited in life and scope rather than being a true company. So while they are not ‘shell’ companies, they actually don’t have any new employees to speak of. They will be ‘run’ by administrative companies that exist on island (who exist for this very purpose) who in turn will unlikely hire additional staff to take on the additional work (mostly regulatory/accounting). There is always the chance they do, but it is not like 1 new SPI = 5 new jobs. More like 50 SPI = maybe 1 new job at the administrator. Now don’t get me wrong, 50 SPIs means more income for the local admin company, local legal providers and government. All of that income is very much welcomed by those groups, but it does not directly translate into a plethora of new jobs.

      • Portia says:

        Not necessarily. For example, they do not have to have their accounting, auditing, banking, etc done in Bermuda, that could possibly be done in other jurisdictions (likely, for cheaper than the costs of doing it here.)

        There is nothing in Mr. Cox’s statement which directly leads one to believe that these registrations do indeed amount to “more boots on the ground.”

      • ABM says:

        What are you talking about?? So wrong so wrong. These shell companies as you would so call them, are being run by the already existing employees of the the company under which they were started.

  3. Triangle Drifter says:

    No the shell companies do not have a physical presence here, but they do pay annual taxes to be here which requires people to process, & they do require the attention of people in the hosting office so, in a small way, they are generating employment.

  4. Jeremy Deacon says:

    It’s all good for Bda’s reputation, but we need bums on seats here, that rent places, that shop for food and clothes here. I’m still not convinced by a statistical drop in unemployment – I’d much rather use payroll tax statistics.

  5. Whatever! says:

    The question is how many jobs will they be creating for locals. If its up to Faye these companies are brining there own type to the island. OBA Promised jobs, I havent seen or heard nothing yet. This is all B&^LLS$%T if you ask me!

    • Mike Hind says:

      Then you haven’t been paying attention.

      A few months ago, 420 new hires. Did you miss that?

      • Ian says:

        How much of that is high turnover bar and nightclub workers Mike….

        • Mike Hind says:

          Anything to try to lessen the fact that there were 420 new hires, right?

          You seem to know something no one else does.

          How many were bar and nightclub workers? You seem to know.

  6. James says:


  7. blackbird says:

    I wonder how many employed Bermudians?

    • Jo blo says:

      Don’t know..

    • Story Teller says:

      Probably more than you…

      And probably paying more taxes into the Government coffers than you as well…

  8. 91 NewCos says:

    We should stop mis-selling these incorporations and be honest with the public. The annual licensing fees (and BMA Insurance Division approval/application fees) are beneficial.

    But the nature of these entities means the service providers, insurance managers and actuarial teams handling this new business simple get more work for their EXISTING OPERATIONS, there will be no new hires, no new office space rented as a result of 50 SPIs, particularly as 3 firms dominate the licensing for this type of work with Partners who are accustomed to their $2+M a year salaries and won’t be hiring any more associates to dilute their year end profit sharing because of this unexpected and non-recurring advisory work.

    Lets start to be honest, as telling people new companies are here, making them believe new jobs are on the horizon, is only setting us up for unrest and problems later down the line when no new nothing materialises, all people want is jobs, lets stop playing on words with peoples expectations.