ABIR Shows $901.6M Contribution To Bermuda
The Association of Bermuda Insurers and Reinsurers today [Aug 6] released its 10th Annual Bermuda Economic Impact Survey results.
“The data show that ABIR members’ directly contribute $901.6 million dollars to the Bermuda economy–an increase of $14.8 million over 2013. ABIR believes that the aggregate spinoff economic impact of our members in Bermuda is a multiple of that direct contribution to Bermuda’s economy,” ABIR said.
“Commercial insurance and reinsurance is the largest private sector driver of the Bermuda economy. With the large increase in alternative capital vehicles taking on underwriting risk in Bermuda today, we have aptly demonstrated our capabilities as a global insurance incubator,” said Stephen Catlin, Executive Deputy Chair of XL Catlin and Chair of the ABIR Board of Directors.
“Bermuda’s regulatory innovations and underwriting strength allows ABIR’s members to bring great value to commercial insurance markets globally. Our contribution is to lead market innovation and make global markets more competitive,” Catlin noted.
“The trend towards consolidation continues and this will affect the industry’s local employment,” Catlin noted. “ABIR members employ more than 1,500 people in Bermuda. More than 66% percent of those employees are Bermudian. We’re proud of the enormous contribution of our employees here in Bermuda.” Catlin also noted.
“The leadership of Bermuda in the alternative capital field and the addition of three new Class 4 underwriters in 2015 is a sign of strong health of the market,” noted Bradley Kading, ABIR President and Executive Director.
“The Bermuda Monetary Authority [BMA] has done an excellent job of creating a regulatory environment that meets international standards with robust prudential supervision. We’re confident the BMA will achieve Solvency 2 equivalency status by yearend and with that plus the US Qualified Jurisdiction status Bermuda will be one of only two jurisdictions which will have met the rigorous bilateral market tests of the US and the EU,” Kading said.
“This successful leadership on international standards of the BMA by CEO Jeremy Cox is essential for Bermuda to be the group supervisory home of ABIR members.”
The total economic contribution is a sum of: travel and entertainment expenses, our payments for business services, our charitable contributions, our real estate costs including housing reimbursement, plus payroll, noted Kading. ABIR represents 20 international insurance groups all of which have essential underwriting operations in Bermuda. Nineteen ABIR members participated in the survey.
Here is a summary of the data from ABIR:
ABIR Travel and Entertainment Expenses in Bermuda
ABIR members estimated in 2014 they spent just over $28.1 million in Bermuda on hotels, airfare, restaurants, taxis and catering down nearly $700,000 from 2013.
ABIR Business Services Expenses in Bermuda
ABIR members estimated in 2014 they spent $66.1 million in Bermuda on legal, accounting, actuarial, temporary services and other consulting services; in 2013 they spent $66.9 million.
ABIR Member Charitable Giving in Bermuda
ABIR members estimated they contributed nearly $11.6 million in 2014 to Bermuda based charities. ABIR Member Construction, Real Estate and Housing Costs ABIR members estimated they spent in 2014 nearly $124.7 million on construction, real estate, and housing costs in Bermuda; $17.2 million more than in 2013. Construction spending has had great variability over the years.
ABIR Member Bermuda Employment
ABIR members reported employing 1,513 full time people in Bermuda in 2014 [down 3 reported at year-end 2013]. Of these employees, 1,007 are Bermudian. The percentage of the ABIR Bermuda employees that were Bermudian in 2014 was 66.5%, compared to 65.4% in 2013.
Who would’ve believed it
“The Association of Bermuda Insurers and Reinsurers today [Aug 6] released its 10th Annual Bermuda Economic Impact Survey results.”
Please take note: “The trend towards consolidation continues and this will affect the industry’s local employment,” Catlin noted. “ABIR members employ more than 1,500 people in Bermuda. More than 66% percent of those employees are Bermudian. We’re proud of the enormous contribution of our employees here in Bermuda.” Catlin also noted.