ABIC Chair On Challenges, Business & More
“Bermuda must be ready for heightened competition from rival jurisdictions as the island’s first tax on corporate profits takes effect,” said Christian Dunleavy, Chair of the Association of Bermuda International Companies [ABIC] and Group President, Aspen Insurance Holdings and CEO Aspen Bermuda Ltd.
A spokesperson said, ”Bermuda’s Corporate Income Tax [CIT], which will apply at a rate of 15% to Bermuda businesses that are part of multinational groups with annual revenue of €750 million or more, will come into effect in January 2025. Speaking at ABIC’s AGM, Mr. Dunleavy stressed the importance of guarding against complacency and ensuring the island remains an attractive business domicile.”
“Bermuda is about to embark on the most significant change to our economic model in our history and the impact on Bermuda’s competitiveness should not be underestimated,” Mr Dunleavy told an audience of ABIC members at O’Hara House, home of AXA XL.
“Bermuda has long been about more than tax competition, and that includes areas that influence the cost of doing business in Bermuda, which include tax, but also regulation, quality and access to affordable healthcare, red tape and hiring practices.
“Capital and people are increasingly mobile, particularly in a world where 15% is the new zero tax. Other financial centres, existing and aspiring, sense an opportunity to entice Bermuda’s world-class companies and leaders to their shores.” An investment promotion agency had been on island last week, touting the attractiveness of their country and incentives, he added.
“The ease and cost of doing business have been critical to Bermuda’s success, but they are probably even more critical to our future success, punctuated by the Bermuda triangle of collaboration between industry, government and the BMA,” Mr Dunleavy said.
“High-tax, high-regulation countries can make themselves competitive in two ways. One is by imposing global taxes and increased regulation on smaller, more business-friendly countries to reduce their competitive edge. The other is to make themselves more competitive. Both of these dynamics are happening today with renewed vigour.
“Bermuda, as a small financial centre, can only do the latter, protect and continually enhance our own competitiveness. Our international businesses are not afraid of competition, nor should Bermuda be.
“Responding to these global pressures by focusing on the areas within our control to enhance our competitiveness and attractiveness is crucial — lowering our cost structure, eliminating bureaucracy, maintaining appropriate regulation, and making sure Bermuda is a great place to live and work.”
A spokesperson added, “Mr. Dunleavy said ABIC supported the Government’s goal of increasing the working population to combat Bermuda’s demographic challenges. He added that ABIC’s member companies have a strong track record of hiring, educating and developing Bermudians, alongside the global talent they bring in, a trend illustrated by the increasing number of Bermudians in senior roles.”
“We know from our data that one IB job creates 1.33 local jobs,” Mr. Dunleavy said. “Career opportunities will only continue over the coming years as this growing pipeline of Bermudians in IB moves up the ranks. Bermudians and overseas talent are not in competition with each other. This is not a zero-sum game. We mutually benefit from each other’s shared experiences and expertise.”
A spokesperson added, “ABIC’s Chair added that IB and Bermudian interests were remarkably aligned, particularly in the desire to see a healthy tourism industry as a strong second pillar of a diverse Bermudian economy.”
“IB, like Bermudians and Bermudian businesses, benefits from increasing airlift and hotel capacity,” Mr. Dunleavy said. “The current restricted hotel capacity and airlift is directly impacting the cost of doing business in Bermuda. It’s increasingly difficult to secure reasonably priced flights and hotel rooms for our staff, customers, visiting colleagues and board meetings.
“IB is a major contributor to business tourism. We welcome the reopening of the Fairmont Southampton in 2026, hopefully the redevelopment of Elbow Beach and other hotel investment. We also support efforts to increase airlift, including BermudAir’s recently announced expansion of routes.”
Mr. Dunleavy expressed ABIC’s support for the Government’s aim to increase residential housing in the city of Hamilton, helping to create a vibrant city centre, while supporting retail businesses and nightlife.
“A residential city is also critical to government’s population goal, while easing pressure on our limited and delicate open space in the parishes,” Mr. Dunleavy said. “It can create new economic opportunities for local companies and lower the cost of housing for all of us, providing a new rung on the housing ladder for first-time homeowners and young Bermudians at a more affordable price point.
“So, 2025 marks a significant moment in Bermuda’s economic development. Our continued success and growth will depend on all of us working together on a shared vision and effective execution of that. Bermuda’s best days can be ahead, and ABIC and its members look forward to continuing to play our role in Bermuda’s success story.”
A spokesperson added, “Recapping ABIC’s activities in 2024, Mr. Dunleavy detailed new vision and mission statements, updated after a survey of members and a strategic review:
“Vision: To help make Bermuda a domicile where international companies choose to come and stay because they will benefit from access to qualified talent, a community that values their presence and an internationally competitive environment that evolves with the changing times.
“Mission: ABIC partners with Government, IB and the community, to ensure that Bermuda is an internationally competitive domicile, where both international companies and the broader community thrive.
“As part of its mission, ABIC hosted discussions with policymakers, community organisations and thought leaders, including the Premier and Minister of Finance; the Minister of Economy and Labour; the CEO of the Bermuda Monetary Authority; the Chair of the Tax Reform Commission and the Commissioners; and representatives of Bermuda Reserve Police, among others. Discussions focused on topics including economic development, growing the working population, global minimum tax, regulatory amendments, community engagement, and the immigration process.
Other highlights of ABIC’s year include:
- “The ABIC Tax Working Group provided input to the Government and helped members understand the implications of the CIT
- “Members donated $745,000 to the long-running ABIC Education Awards, providing support to 25 students, including three memorial awards
- “Upgraded the Bermudascholarships.com website, which ABIC drives in partnership with BFIS, the Bermuda Foundation for Insurance Studies
- “Supported the Department of Workforce Development’s summer employment programme by facilitating placements for interns at ABIC and member companies
- “Worked closely with the Department of Immigration to identify opportunities to improve work-permit processing and advocated for the fast-tracking of permit applications for actuaries
- “ABIC’s Diversity, Equity and Inclusion Committee introduced a robust programme to support members with their own DEI initiatives; continued to support the Association for Corporate Racial Equity [ACRE], OUTBermuda and LINK Bermuda.
“Mr. Dunleavy also thanked Patrick Tannock, who retired this year after nine years as ABIC Chair and a 40-year insurance career, for his “unwavering commitment, time, talent and passion that have greatly benefited ABIC and all stakeholders”. Mr. Tannock will remain on the ABIC Board of Directors.
