17 April 2014News

ABIR members demonstrated ‘earnings power’ in 2013

Members of the ABIR wrote more business, built their capital positions and were increasingly profitable in 2013, a report by the association has found.

According to figures from the Association of Bermuda Insurers and Reinsurers (ABIR), its analysis of 18 of its 21 members found that gross written premiums rose to $70.1 billion in 2013 from $66.4 billion in 2012.

Capital and surplus rose during the period, from $95.2 billion to $95.4 billion, while net income increased to $11.7 billion, up from $9.4 billion in 2012.

Commenting on the results, Brad Kadingpresident and executive director of ABIR says: “The $11.7 billion in net income demonstrated earnings power during a year characterized by low catastrophe losses. But this number was still below net income reported by the membership in 2009.”

“ABIR members reported their largest group total equity base in the eight years in which data has been collected, even though the number of members reporting was reduced by one due to an acquisition completed in 2013,” notes Kading.

“ABIR members have welcomed the interest of alternative capital providers including pension funds into the risk taking business and have focused in 2013 on expanding markets given the availability of new capital in taking on insurance and reinsurance risk,” Kading noted.