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Re/insurers “confident” in Bermuda market despite challenges: BMA

27th April 2017 - Author: Luke Gallin

The Bermuda Monetary Authority (BMA) has released statistics on the combined performance of the Island’s various classes of insurance, reinsurance, and insurance-linked securities (ILS) players as at December 31st 2015, revealing “confidence in the Bermuda market” despite the tough operating landscape.

Bermuda reinsuranceAccording to the BMA’s most recent information, which is based on annual filings and includes all classes of re/insurers and special purpose vehicles (SPIs), overall, Bermudian insurers and reinsurers recorded net premiums of $108.5 billion as at December 31st 2015, compared with $116.2 billion as at December 31st 2014, which represents a decline of roughly 6.6%, year-on-year.

Gross written premiums also declined in the period from roughly $151.8 billion at the end of 2014 to $130.8 billion as at December 31st, 2015.

Capital & Surplus declined from $214.5 billion to $200.8 billion at the end of 2015, while total assets actually increased by roughly 8.2% from $583.3 billion to $631.7 billion, as at December 31st 2015.

The number of re/insurance licences as at December 31st 2015 totalled 1,231, compared with 1,130 a year earlier, reports the BMA.

The BMA states that despite the decline in premiums written and the growth in held liabilities across the Bermuda insurance and reinsurance marketplace, the growth in total assets demonstrates “confidence in the Bermuda market,” during what was a testing period, which remains today.

Discussing the figures Craig Swan, the BMA’s Managing Director – Supervision, said; “These statistics illustrate the continued strength of Bermuda’s (re)insurance market and highlight the domicile’s position of high repute in the world’s risk transfer industry.

“Bermuda is one of seven countries having US Qualified Jurisdiction Status and one of two countries assessed as being fully equivalent under Solvency II. Bermuda’s positive reputation means that more (re)insurers are controlling and managing the primary operations of their group structure from Bermuda.

“In the Authority’s 2017 Business Plan released this month, the Authority said it will continue to strive to improve its performance, relationships and operations in 2017. Bermuda’s reputation as a financial centre depends on the Authority’s ability to continue executing and consistently delivering supervision to the high standard expected of it.”

Breaking down the figures further, the BMA reports that commercial classes recorded net premiums of $63.1 billion, compared with $76.7 billion a year earlier. Commercial classes also recorded held capital of $125.3 billion and total assets of $436.7 billion, compared with $135.2 billion and $387 billion as at December 31st 2014, respectively.

Bermuda’s captive sector, which continues to expand, reported an increase in net premiums to $45.4 billion when compared with the previous year, held capital of $75.5 billion, and had total assets of $195 billion, which is only slightly down on the $196.3 billion recorded as at December 31st 2014, as shown by the BMA’s statistics.

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