Insurance registrations level with last year
Bermuda registered 45 new insurers and intermediaries during the first half of the year, on part with the 44 registrations during the same period of 2014.
The Bermuda Monetary Authority (BMA) registered three new Class 4 reinsurers capitalised at a minimum of $100 million in the commercial reinsurance sector, as well as three new Class 3A reinsurers.
Shelby Weldon, director of licensing and authorisations at the BMA, said: “In fact, one of the new Class 4s – which was a result of the partnership between one of the world’s largest global reinsurers and one of the world’s largest asset management firms – initially capitalised at approximately $775 million. While another new Class 4 subsidiary initially capitalised with $300 million.
“The ability to attract over $1 billion of capital in just two new Class 4 reinsurers speaks to the continued significance of the Bermuda market. In addition, an increase in the number of new insurance intermediaries setting up in Bermuda – increasing from eight to 11 year-on-year – also demonstrates Bermuda’s attractiveness as a global insurance marketplace.”
On the captive side, registrations for Class 1, 2 and 3 insurers increased from seven to ten year-on-year. This included captives from Latin America, covering the risks of predominantly Colombian parents, and Canadian captives, covering property and general liability risks.
Bermuda also registered 14 new special purpose insurers (SPIs) in the first half of 2015, compared with 16 new SPIs recorded during the first half of 2014.
Recently, a Chinese SPI was established on the Island to facilitate a programme of catastrophe bond transactions with China’s largest reinsurer, China Re.
“During H1 2015, the Authority noted a number of newly registered insurers expressly designed to facilitate the Chinese insurance market,” Weldon said. “Attracting business from China has been an objective for the jurisdiction for many years. The formation of these insurers is an important milestone in this regard.”