The Association of Bermuda Insurers and Reinsurers (ABIR) has reported that its members contributed a significant $8.5 billion to the Bermudian economy over the decade ended 2020.
The figures reported include the findings of the 16th annual ABIR Bermuda Economic Substance Survey, which documents a direct economic contribution of $722 million from member companies in 2020.
According to the data reported from 2011 through 2020, the group of ABIR member’s aggregate economic impact included $6.4 billion in compensation paid to employees in Bermuda.
The remaining $2.1 billion included spending on travel, business services, charitable donations, and construction/real estate.
Other highlights of ABIR members’ economic contribution in 2020 include $576 million in total salary and benefits compensation paid to Bermuda-based employees; $66 million spent on business services, including legal, accounting, actuarial, temporary, information technology and other consulting services; and $73.3 million on construction, real estate, housing and office space.
At the same time, ABIR companies spent $6.8 million on travel and entertainment in Bermuda, including hotels, airfares, restaurants, taxis and catering, which ABIR notes is a “significant decrease compared to recent years because of the pandemic”; and $7 million in donations to Bermuda charities, including $2.1 million of COVID-related giving.
Marc Grandisson, Chief Executive Officer of Arch Capital Group and Chairman of ABIR, commented: “ABIR members’ commitment to Bermuda has resulted in billions of dollars of direct investment in the island’s economy over the past decade.
“During the economic challenges of the COVID-19 pandemic, we are especially proud that our members have continued to contribute substantially through employment, on-island spending and record charitable donations.”
ABIR member companies employed 1,332 people in Bermuda, of whom 920 were Bermudians. The local component of the workforce has consistently measured around 70%, reports the ABIR. The salary and benefits median for ABIR members’ Bermudian employees in 2020 was $176,401.
Additionally, the data finds that ABIR members had a global workforce of 87,400 in 2020, including 37,937 employees in the US, 5,726 in the European Union and 42,405 in non-EU countries, including 8,125 in the UK.
John Huff, President and Chief Executive Officer of ABIR, said: “We are proud of how our members, as leaders in the global re/insurance market, have helped over time to build Bermuda’s reputation as the risk capital of the world, while also consistently investing in Bermuda’s economy and its people.
“ABIR members’ long-term commitment to Bermuda continues to show its value during the challenges of the pandemic. International business has sustained Bermuda government through the stability and reliability of payroll and local taxes. We’re especially proud of our members’ donations to Bermuda charities, which total more than $35 million over the past five years alone.”
