Insurance sector bolsters growth in Bermuda’s investment assets

The value of Bermuda’s foreign portfolio investment assets increased by 8 percent in 2016 as a result of growth in the insurance sector’s total assets, according to the latest Coordinated Portfolio Investment Survey (CPIS) released by the Bermuda Monetary Authority (BMA).

The CPIS is part of the International Monetary Fund’s (IMF) comprehensive international survey. It measures Bermuda’s holdings of foreign portfolio investment assets, which comprise tradable financial instruments – other than direct investments or reserve assets – issued by unrelated non-residents.

According to the BMA, Bermuda’s participation in the CPIS contributes to improved understanding of the jurisdiction as an international financial centre and its impact on global financial intermediation.

Some of the highlights from the CPIS include Bermuda’s foreign portfolio investment assets amounted to $546 billion as of 31 December 2016, representing an increase of 8 percent from 2015

The debt securities comprised 82 percent of Bermuda’s foreign portfolio holdings, with 93 percent of them being long-term debt securities.

US holdings in the United States once again dominated Bermuda’s foreign portfolio investment assets accounting for 58 percent, an increase of 7 percent from 2015.

The insurance sector heavily dominated Bermuda’s foreign portfolio holdings with an ownership share of 84 percent, followed by investment funds accounting for 14 percent and banks with 2 percent.

The IMF has conducted the CPIS since 1997 with 82 countries currently participating. Bermuda has participated in the CPIS on a voluntary basis since 2001 but results were published for the first time in 2015.