Profits fell in 2014 for the member companies of the Association of Bermuda Insurers and Reinsurers (ABIR).
ABIR said that of its 21 member re/insurers, 19 participated in the report. The reported net income of $11 billion in 2014 decreased from $11.7 billion in 2013.
The re/insurers wrote $74 billion in global gross written premium in 2014, compared with $70.1 billion in 2013 on a capital and surplus base of $99.3 billion, compared with $95.4 billion in 2013.
“As was the case in 2013, the $11 billion in net income demonstrated earnings power in years characterised by low catastrophe losses. But this number was still below net income reported by the membership in 2009,” said Bradley Kading, president and executive director of ABIR.
“ABIR members reported their largest group total equity base in the nine years in which data has been collected; partly due to lower than average catastrophe losses,” Kading added. “Last year was characterised by intense market competition as pension fund capital converged with traditional re/insurance operations,
“As for this year, the long anticipated consolidation among ABIR members began in early 2015 and the four completed or pending acquisitions will dramatically change the landscape of this underwriting report in 2015,” Kading said.
Bermuda Reinsurance, ABIR, Insurance, Bradley Kading