ABIR members contribute $1bn to Bermuda economy

Association of Bermuda Insurers and Reinsurers member companies contributed a record $1.02 billion to Bermuda’s economy in 2023.

The number was revealed in ABIR’s annual economic substance survey, to which 30 companies responded. The survey details the on-island spending of ABIR re/insurers in areas including employment, business services, travel, construction/real estate and charitable donations.

ABIR also noted that its companies are collectively the single-largest employer in Bermuda and the leading payer of employment taxes and will be the largest payer of the pending Corporate Income Tax,

As such, ABIR said it wanted to work with the Bermuda Government to ensure the island remained competitive.

The leading international re/insurers surveyed employed 2,140 full-time employees in Bermuda, including 474 underwriting staff. Of the total workforce, 1,441 or 67% were Bermudians, spouses of Bermudians, or permanent resident certificate holders. ABIR said this is the highest number of Bermudian employees recorded in the survey.

ABIR said highlights of ABIR members’ economic contributions in 2023 include:

• $115.9 million spent on business services, including legal, accounting, actuarial, temporary, information technology and other consulting services;

• $87.7 million on construction, real estate, housing and office space;

• $20.3 million spent on travel and entertainment in Bermuda, including hotels, airfares, restaurants, taxis and catering; and

• $7.4 million in donations to Bermuda charities.

“ABIR members are proud of the substantial and sustained contribution made to the Bermuda economy over more than 30 years,” said Pina Albo (pictured), Hamilton chief executive officer and ABIR chair. “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.”

ABIR members are projected to be the largest payers of the Corporate Income Tax, a 15% tax on the net income of multinational companies with revenues of more than 750 million euros, which will take effect in 2025.

“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”, said John Huff, ABIR’s CEO.

“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.”

ABIR also noted that its companies attracted significant numbers of business travellers, who made up 16% of Bermuda’s air arrivals during the first three quarters of 2024, supporting year-round demand for critical air services linking the island with cities such as New York and London.

The survey found ABIR members also allocated more than $1.17 million to scholarships on the island in 2023, in addition to the 108 paid internships they provided last summer, a record high number that underlines ABIR’s commitment to building a strong pipeline for local talent.

Since 2006, ABIR members have led the local economy with an aggregate economic contribution amounting to $15.35 billion, the association said.