Member companies of the Association of Bermuda Insurers and Reinsurers (ABIR) contributed a staggering $1,016,904,197 to Bermuda’s economy in 2023, making it the highest amount recorded in ABIR’s 31-year history.
In fact, 2023 marked the first year that the total has ever surpassed $1 billion.
This significant figure was a notable highlight of the Association’s 19th annual Economic Substance Survey, which saw considerable participation with 30 member companies responding.
Since 2006, ABIR members have led the local economy with an aggregate economic contribution amounting to $15.35 billion.
From what we understand, the survey details the on-island spending of ABIR re/insurers in a variety of different areas including: employment, business services, travel, construction/real estate and charitable donations.
A variety of areas benefited from the record high spending on goods and services from local businesses, such as taxi drivers, restaurants, caterers, hotels, legal and accountancy firms, IT service providers, telecommunications firms, recruitment agencies, consultants, realtors, commercial property owners and construction firms, among others too.
The international re/insurers surveyed employed 2,140 full-time employees in Bermuda, 474 of which were underwriting staff. Of the total workforce, 1,441 were Bermudians, spouses of Bermudians, or permanent resident certificate holders (PRCs).
It’s worth showcasing that this marked the largest number of Bermudian employees recorded in the survey for a decade, at a time when employment statistics show more Bermudians are working in the island’s international business sector than ever before.
Pina Albo, Hamilton CEO and ABIR Chair, commented: “ABIR members are proud of the substantial and sustained contribution made to the Bermuda economy over more than 30 years. Over the past 17 years alone, ABIR’s survey has tracked more than $15 billion that has flowed into the Bermuda economy through members companies’ direct on-island spending. The multiplier effect as these dollars circulate through the economy means the full benefit of our industry’s presence to Bermuda is much greater, supporting livelihoods across all sectors.
“The data in ABIR’s annual economic substance surveys provides hard evidence of ABIR member companies’ longstanding commitment to Bermuda. The Island’s vibrant re/insurance marketplace continues to offer Bermudians opportunities for fulfilling and rewarding careers.”
Some of the key highlights of ABIR members’ economic contributions throughout 2023 include $115.9 million spent on business services, including legal, accounting, actuarial, temporary, information technology and other consulting services, and $87.7 million spent on construction, real estate, housing and office space.
As well as this, $20.3 million was also spent on travel and entertainment across Bermuda too in 2023.
John Huff, ABIR’s CEO, said: “With many ABIR members falling within scope of the Bermuda Corporate Income Tax, we are mindful of how the sea change in the international tax system is rapidly redefining the parameters of competition between jurisdictions.”
“ABIR stands ready to work with the Bermuda Government to help ensure that Bermuda’s business ecosystem and cost structure remains attractive to international business, as we enter this new era of heightened global competition,” he concluded.
