ABIR Marks Ten Years Of Solvency II Equivalence
ABIR partnered with Centre for European Policy Studies [CEPS] / European Capital Markets Institute [ECMI] to produce ‘Ten Years of Solvency II Equivalence’ a historic document describing the ongoing importance of Bermuda’s commercial reinsurance market to the European Economic Area [EEA].
A spokesperson said, “On January 1, 2026, Bermuda celebrated ten years of full Solvency II equivalence, one of only two non-EU jurisdictions to hold this prestigious status. To commemorate this significant achievement, the Association of Bermuda Insurers and Reinsurers [ABIR] partnered with the Centre for European Policy Studies [CEPS] / European Capital Markets Institute [ECMI] to produce ’Ten Years of Solvency II Equivalence’ the defining document of the last decade’s major equivalence milestone.
Mark Cloutier, Chair, ABIR said, “Bermuda’s leading re/insurers appreciate the value of Solvency II equivalence to the commercial market, and therefore Bermuda’s economy as a whole. Without equivalence, our commercial reinsurers and groups would face much higher regulatory and administrative hurdles, making it more difficult to write business into the important European market. At the same time, it would also make it much harder for European insurers to access a broader scope of counterparties, capital sources and expertise in Bermuda.”
“ABIR congratulates the Bermuda Monetary Authority for its foresight in seeking full equivalence in all three areas of Solvency II [reinsurance, group solvency and group supervision] in the years immediately preceding 2016,” Mr. Cloutier said. “We look forward to the continued evolution of the EU insurance/Bermuda reinsurance relationship and stand ready to assist build capacity in additional ways for future decades to come.”
John Huff, President & CEO, ABIR said, “We previewed the ‘Ten Years of Solvency II Equivalence’ Report in Europe for the ABIR 19th Annual International Insurance Regulatory Dialogue in Brussels in early September 2026.”
“While the economic significance of Solvency II equivalence for Bermuda has already been much discussed, this new Report describes in unprecedented detail the impact of Solvency II equivalence on the European Economic Area [EEA], especially in its ability to access international risk bearing capacity,” Mr. Huff said. “For example, the Report shows how in 2023, reinsurance accounted for 18.8% of total gross written premiums in insurance and reinsurance sectors across the EEA, equivalent to €229.5 billion.”
A spokesperson added, “International reinsurance is not a marginal component of the EEA’s insurance market – about 38% of EEA reinsurance transactions involved counterparties in third countries, including 21% with jurisdictions recognised as equivalent under Solvency II.
“During the nine year period from 2016-2025, Bermuda commercial [re]insurers reported gross claims amounting to €80 billion [$93 billion] related to EU entities.
“In 2024, Bermuda [re]insurers assumed €212 billion of gross catastrophe loss exposure, while still retaining sufficient capital to meet policyholder obligations and regulatory capital requirements.
“The Report’s author, Apostolos Thomadakis, Senior Research Fellow and Head of the Financial Markets and Institutions Unit at CEPS; Head of Research at ECMI, notes how this past decade of ongoing supervisory relationships should set the bar for European financial regulation moving forward.”
“With diverging regulatory regimes and increasing need for capital and risk-taking capacity in Europe, the ability to recognise the same prudential results in different regimes will become increasingly relevant,” Dr. Thomadakis said. “For Europe the conclusion is clear: regulatory openness does not imply lowering of standards. High standards simply do not have to look identical in all countries.”
Mr Huff concluded, “In essence, the ‘outcomes-based’ spirit of Solvency II equivalence has helped the EU to rely on another jurisdiction’s regulatory and supervisory framework to achieve sufficiently comparable outcomes. Regulators from different countries effectively say to each other, although we might not take the same route, we reach the same destination. ABIR looks forward to building upon this decade of supervisory cooperation by solving other capital investment critical issues for the EEA.”
View the full ‘Ten Years of Solvency II Equivalence’ report here [PDF].
