BMA licenses Puerto Rico Parametric Re

Puerto Rico Parametric Re – which has issued the first catastrophe bond to benefit the government of a US territory – was licensed by the Bermuda Monetary Authority in May. 

The company was one of three insurance companies licensed by the BMA, bringing the total of new Bermuda insurers to 28. This compares to 32 through the first five months of 2023. 

Puerto Rico Parametric Re’s Series 2024-1 catastrophe bond is reported to have been launched with the initial goal of raising $75 million for a three-year bond. It has been reported that it is now looking to raise $85 million. 

Aon last year completed a parametric insurance programme for the Government of Puerto Rico, aimed at helping the island reduce its insurance obligation to the US Federal Emergency Management Agency.

The BMA also licensed a Class E life reinsurer, GA Iris Re and an Innovative General Business insurer – Bo Wang Re (Bermuda|). An IGB company is an innovative company which wants to test a new idea and operate in the BMA’s regulatory sandbox for a set period of time. 

Of the 28 new companies licensed so far this year, four are intermediaries, five are Class E life re/insurers, 13 are special purpose insurers and the remaining five are captives , a Class A Life insurance company and two collateralised insurers in addition to Bo Wang Re. 

Of the 32 companies licensed between January and May 2023, 11 were SPIs.

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