ABIR Members Contribute $830M To Economy

September 22, 2020 | 3 Comments

[Updated] The Association of Bermuda Insurers and Reinsurers [ABIR]  today released the results of its 15th annual ABIR Bermuda Economic Substance Survey, “detailing significant contributions to the Bermuda economy and workforce.”

A spokesperson said, “Highlights from the report, which tracks 2019 calendar-year data, include:

  • ABIR members contributed over $830 million to the Bermuda economy, up $15 million from calendar year 2018
  • Bermudians represent nearly 80 percent of ABIR’s member workforce, a record high
  • ABIR members invested more than $131 million on local construction, real estate, housing and leasing

“ABIR member companies serve a global community, while being committed to the training and development of the local Bermuda workforce,” said Albert Benchimol, chief executive officer of AXIS Capital and chairman of ABIR.

“The results show that our member companies employ a workforce that is nearly 80 percent local, the highest percentage since we started this survey. ABIR made a long-term commitment to diversity, equity, and inclusion, and we are seeing solid progress, as reflected in this year’s survey results. We remain very proud to be a leading contributor of economic activity in Bermuda.”

The organization added, “The survey data, collected from 26 ABIR member companies, tracks direct economic contributions across travel, business, charity giving, construction expenses and compensation paid to Bermudian-based employees. ABIR member company contributions include:

  • $624 million in payroll to Bermudian-based employees
  • $68 million on legal, accounting and actuarial, information technology, temporary services and other consulting services
  • $20 million on hotels, airfare, restaurants, taxis and catering
  • Over $6 million in charitable contributions to Bermuda organizations

“ABIR members employed 1,515 full-time staff in Bermuda, of which 1,199 were Bermudians, spouses of Bermudians, or permanent residence certificate holders, which represents an increase of 64 Bermudian employees since 2018 [a 5 percent increase]. ABIR members continue to offer Bermudian employees’ competitive salaries, as evidenced by the 2019 salary and benefits median of $171,251.

“ABIR members’ commitment to investing in the training and development of a vibrant, local workforce was further reinforced by the survey data:

  • ABIR members offered nearly 60 internships to Bermudians in 2019
  • Educational scholarships in Bermuda totaled over $1.3 million for 2019
  • Members continue to offer additional training and development opportunities, such as graduate training programmes, tuition reimbursement and leadership training

“All ABIR members have licensed operating companies in Bermuda, and 42 percent have an ultimate holding company in Bermuda. Outside Bermuda, ABIR members reported the top-five locations for their global operations were: United Kingdom, United States, Switzerland, Ireland and Singapore.”

“Our member companies are experts in insuring against catastrophic losses, climate and cyber risks, while remaining committed to investing in the people and economy of Bermuda,” said ABIR Chief Executive John Huff. “I’m so proud of our 15-year record of success as detailed in this annual survey.”

“I want to highlight the additional support that ABIR members have provided through their charitable giving during this global pandemic,” Huff continued.

“During the first six months of 2020, ABIR member companies contributed $3.1 million of support for Bermuda charities. We are here today, and we’ll be here tomorrow. Regardless of the challenge, ABIR stands ready to meet it with the support of our strong Bermuda workforce.”

CY2019 Econ Substance Infographic

Update Sept 25, 4.30pm: A spokesperson said, “On September 22, 2020, the Association of Bermuda Insurers and Reinsurers [ABIR] released the results of its 15th annual ABIR Bermuda Economic Substance Survey, detailing significant contributions to the Bermuda economy and workforce, including $830 million in direct economic contribution to Bermuda.

“Due to a data transposition error, ABIR reported a total of nearly 80% of Bermuda-based employees were Bermudian [Bermudian, Spouse of Bermudian or Permanent Resident Certificate Holders]. While there was an actual increase from 2018 of employees on island of 46 additional jobs, the percentage of employees, who are Bermudian [Bermudian, Spouse of Bermudian or Permanent Resident Certificate Holders] was 72% in 2019, a decrease of 2% from 2018. ABIR is immediately issuing this correction following an internal review that identified the error after the dissemination of the original report.

“Despite the error, the overall results of the survey reaffirm that ABIR members remain committed to Bermuda, Bermudian employees and the Bermuda economy. The re/insurance sector has remained a stabilizing force in Bermuda’s economy through the pandemic and the 1,576 jobs in Bermuda are significant. A corrected release is provided below.

“The Association of Bermuda Insurers and Reinsurers [ABIR] today released the results of its 15th annual ABIR Bermuda Economic Substance Survey, detailing significant contributions to the Bermuda economy and workforce.

“Highlights from the report, which tracks 2019 calendar-year data, include:

  • 1. ABIR members contributed over $830 million to the Bermuda economy, up $15 million from calendar year 2018
  • 2. Bermudians represent over 72% percent of ABIR’s member workforce
  • 3. ABIR members invested more than $131 million on local construction, real estate, housing and leasing

“ABIR member companies serve a global community, while being committed to the training and development of the local Bermuda workforce,” said Albert Benchimol, chief executive officer of AXIS Capital and chairman of ABIR. “The results show that our member companies employ a workforce that is growing. ABIR made a long-term commitment to diversity, equity, and inclusion, we remain very proud to be a leading contributor of economic activity in Bermuda.”

“The survey data, collected from 26 ABIR member companies, tracks direct economic contributions across travel, business, charity giving, construction expenses and compensation paid to Bermudian-based employees. ABIR member company contributions include:

  • 1. $624 million in payroll to Bermudian-based employees
  • 2. $68 million on legal, accounting and actuarial, information technology, temporary services and other consulting services
  • 3. $20 million on hotels, airfare, restaurants, taxis and catering
  • 4. Over $6 million in charitable contributions to Bermuda organizations

“ABIR members employed 1,576 full-time staff in Bermuda, of which 1,137 were Bermudians, spouses of Bermudians, or permanent residence certificate holders. ABIR members continue to offer Bermudian employees’ competitive salaries, as evidenced by the 2019 salary and benefits median of $171,251.

“ABIR members’ commitment to investing in the training and development of a vibrant, local workforce was further reinforced by the survey data:

  • 1. ABIR members offered nearly 60 internships to Bermudians in 2019
  • 2. Educational scholarships in Bermuda totaled over $1.3 million for 2019
  • 3. Members continue to offer additional training and development opportunities, such as graduate training programmes, tuition reimbursement and leadership training

“All ABIR members have licensed operating companies in Bermuda, and 42 percent have an ultimate holding company in Bermuda. Outside Bermuda, ABIR members reported the top-five locations for their global operations were: United Kingdom, United States, Switzerland, Ireland and Singapore.

“Our member companies are experts in insuring against catastrophic losses, climate and cyber risks, while remaining committed to investing in the people and economy of Bermuda,” said ABIR Chief Executive John Huff. “I’m so proud of our 15-year record of success as detailed in this annual survey.”

“I want to highlight the additional support that ABIR members have provided through their charitable giving during this global pandemic,” Huff continued. “During the first six months of 2020, ABIR member companies contributed $3.1 million of support for Bermuda charities. We are here today, and we’ll be here tomorrow. Regardless of the challenge, ABIR stands ready to meet it with the support of our strong Bermuda workforce.”

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Comments (3)

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  1. $830M says:

    Enough said. We need them and it is time for government to acknowledge this and tell the voters that we desperately need this stream of our economy….it is about all we have. We need to treat IB (I know this article is about insurers) more like tourism – because it is very much like tourism. Anything that brings money into the island is essentially an export therefore we have two exports and they are tourism and IB. Like the sightseers the IB crowd are only here until they stop enjoying it.

    • D.A says:

      In fact. IB has been a greater asset to the economy than tourism long before the 21st century.

  2. Vortex says:

    More expats needed, simple as that.

    Job creating, high spending, house renting, gold dust.

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