Building a supportive regulatory framework for legacy

Bermuda’s legacy re/insurance segment is producing innovative solutions for the industry, says IRLA Bermuda committee chair Sarah Ruberry.

One year after the Insurance & Reinsurance Legacy Association launched its new chapter in Bermuda, this is an appropriate time to reflect on the progress to date and our vision for the future.

At launch, we outlined this new branch’s purpose as an influential touchpoint with the local regulator and as a knowledge-sharing and learning hub for the international legacy sector in Bermuda. I’m glad to report we have made strides on both these fronts.

Bermuda’s credentials as a major re/insurance hub are well established. Its advanced regulatory framework, stability, ingrained expertise and infrastructure make it a natural home for insurers – and the legacy sector is no different. Part of our mission was to strengthen the Bermudian legacy market, and we’ve seen clear growth in the sector over the past year, demonstrating the impact of collaboration and potential for further advancement.

Since the establishment of this group, we have received warm support from the legacy sector. As of April, we have the majority of Bermuda’s legacy providers on board, allowing us to effect real change in the space and present a united voice for legacy market participants to the regulators as the sector continues to innovate.

A vital aspect of our work is to build a supportive regulatory regime to foster growth and innovation in the legacy market. From the outset, we set out to work closely with the Bermuda Monetary Authority to build on the local market’s existing strengths and increase its competitiveness. For example, in January, we responded to the BMA’s consultation on the proposed enhancements to the Insurance Group Supervision Framework, looking at strengthening the BMA’s group-wide supervision improving regulation and efficiencies that eliminate the duplication of supervisory efforts.

The proposed provisions to the Supervision Framework will:

provide a direct approach to the supervision of insurance groups;
allow for the designation and registration of holding companies; and
ensure that group supervision is triggered by the presence of both a registered insurance entity and ultimate parent company in Bermuda.

IRLA Bermuda positively viewed the proposed changes as a natural and logical next step for the BMA in conducting group supervision and oversight.

Providing value to the legacy market

Alongside deepening regulatory ties and relations in the region, the Bermuda legacy market has witnessed some significant transactions over the past year:

In the second half of 2024, Enstar introduced its innovative forward exit option (FEO) solution for the insurance-linked securities (ILS) market, delivering an option for investor exit, liquidity and finality based on a pre-determined pricing framework. This solution has vast potential, offering the ILS market a much-needed creative mechanism for releasing trapped capital and highlights the continuous evolution of the ILS market within the legacy space.
RiverStone International established a loss portfolio transfer reinsurance solution for several QBE subsidiaries, including QBE’s Lloyd’s syndicates, with RiverStone International’s subsidiaries assuming reserves of $1.2 billion. The deal strengthened RiverStone’s Bermuda operations as a major hub as a part of its global capacity.
Compre completed a legacy reinsurance transaction with data-driven risk exchange Accelerant. The deal saw Compre create a structured reinsurance solution to support Accelerant’s strategic objectives, providing approximately $150 million of cover on loss reserves.

We’ve seen clear growth in the sector over the past year, demonstrating the impact of collaboration and the potential for further advancement.”

Shaping the future

Looking to the future, IRLA Bermuda also has a growing ambition to use our voice to educate the broader insurance industry on the role of legacy within the capital cycle, including in the US and further afield.

Our goal is to:

promote the value of Bermuda’s legacy insurance market while showcasing the island’s strong regulatory framework and legacy expertise;
provide one consolidated voice to the BMA, supporting its robust regulatory framework;
create an open environment for members to share ideas, network and collaborate to help keep the industry evolving and innovating;
be an educational resource by helping to support local talent and promoting the excellent career opportunities within the legacy reinsurance industry; and
support the island community through volunteering events such as Keep Bermuda Beautiful clean-up events.

Over the past 12 months, IRLA Bermuda has made significant breakthroughs, and we are optimistic and energised about the promising developments ahead. As I welcome new members to the branch, and encourage others to join our fold, we are very open to ideas from the market about future initiatives and partnerships that will help us achieve our goals.

We will be hosting an IRLA Bermuda Legacy Forum at the Hamilton Princess and Beach Club on September 28, 2025, bringing together key industry stakeholders to engage in meaningful discussions and provide networking opportunities. We look forward to seeing you there!

Sarah Ruberry is chair of the IRLA Bermuda Committee and chief compliance officer, Enstar Group.

To find out more about the Insurance & Reinsurance Legacy Association visit irla-international.com

For more news on Bermuda Risk Review 2025, click here.

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