A panel of industry leaders has highlighted the impressive growth of Bermuda’s life reinsurance sector over the last five years, noting how with assets of $500 billion it has become the largest insurance sector on the island.
Marc-André Giguère, President and Chief Executive Officer at Munich Re, US (Life and Health), said the sector could be poised to grow even faster than it has been, while Thomas Olunloyo, CEO, Legal & General Re, praised the “tremendous innovation” on the island.
Robyn Wyatt, CFO, Resolution Life, said, “There is absolutely just an enormous amount of money that is looking to be put to work somewhere. For life reinsurance, while the returns are not going to be super enhanced, they are steady – they’re a steady cash flow.”
Frank Gillis, Chairman, Athene Life Re, noted, “We’ve gone from a handful of companies to more than 48 companies – that’s dramatic. There’s a greater number of companies here and there’s a greater acceptance in the broader market.”
Gillis added that Bermuda has the potential to become the leading global centre for life reinsurance.
“I think because of the breadth of the market that has developed here, I think it’s an interesting place for new entrants as well as more seasoned companies,” he said.
“Bermuda has been number one in catastrophe cover, and ILS and captives for a while. And I think we are quickly developing into being number one in our sector.”
Colm Homan, Partner, Insurance, PwC Bermuda, noted that a key takeaway from the panel was the impressive growth the sector has demonstrated over the last five years and the optimism that our panellists had that this growth is going to continue.
“Despite the fact that investment returns are challenged at the moment, they had a lot of optimism that there is untapped potential in the market, in particular in the pensions area, and that this is going to provide an avenue for significant growth for Bermuda going forward.”
