14 July 2023News

Fidelity forms Bermuda long term reinsurer

US investment giant Fidelity Investments has formed a Bermuda-based reinsurance subsidiary to focus on US retail fixed annuities and pension transfer opportunities as the Bermuda long term reinsurance sector continues to grow.

Soteria Reinsurance Ltd was registered as a Class C insurer by the Bermuda Monetary Authority in June, along with two special purpose insurers and two intermediaries, bringing the total number of new insurance entities to 37 for 2023.

According to a brochure from Fidelity Institutional Asset Management, Soteria Re is owned directly by Soteria Reinsurance Holdings, LLC which itself is a 100% owned subsidiary of FMR LLC.

It said: “Soteria Re is a newly incorporated Bermuda exempted company.  Soteria Re will focus on affiliated reinsurance of US retail fixed annuities and pension risk transfer opportunities of existing and new Fidelity Investment Life Insurance Company business.”

The BMA also special purpose insurers Stabilitas Re and Mayflower Re, both of which are catastrophe bond vehicles.

Stabilitas Re is owned by Bermuda-based reinsurer Conduit Re and has issued a debut cat bond of $100 million, also listed on the BSX. It provides US named storm and US earthquake retrocessional reinsurance protection for Conduit.

Mayflower Re has listed a $250 million catastrophe bond on the Bermuda Stock Exchange and is reported to have been issued by the Massachusetts Property Insurance Underwriting Association  to cover named storms in Massachusetts.

Two intermediaries were registered. AdVantage Capital Advisors registered as an agent while DNX Intermediaries (Bermuda) Ltd is an innovative intermediary – IB.

The number of Bermuda incorporations is roughly in line with trends in 2022 when 39 insurance entities were registered through the end of June.