The relationship between Bermuda and Lloyd’s is thriving, with Lloyd’s reputation helping Bermudian carriers establish credibility.
This is according to Brad Kading, the president and executive director of the Association of Bermuda Insurers and Reinsurers (ABIR), who delivered a speech before the Insurance Institute of London at Lloyd’s on February 26, 2015.
“Lloyd’s and ABIR are proud partners in commercial insurance and reinsurance markets,” said Kading. “Lloyd’s reputation and history helps Bermuda carriers establish credibility and gain access to markets where barriers exist – a key reason why ABIR and Bermuda are heavily invested in the UK market.”
Bermuda insurers have invested £3.6 billion in shareholders’ funds to 16 UK insurers;, while ABIR members and other Bermuda insurers account for 24 percent of the Lloyd’s of London premium volume.
In addition, Bermuda’s insurers have contributed more than 50 percent of the estimated loss payments for some large European insurance events and ABIR members employ 5,500 people in the United Kingdom.
Building on the speech given by John Nelson, the chair of Lloyd’s of London, Kading cited a number of benefits that both sides bring to the partnership.
He explained that ABIR’s members $95 billion in capital builds a strong financial foundation, while the leadership of the members in property cat reinsurance creates opportunities for Lloyd’s syndicates.
The US subsidiaries of ABIR insurers afford Lloyd’s franchises with business opportunities, Kading said, and their balance sheets create global diversification benefits which expands capacity.
On Lloyd’s, he said that not only does its reputation and history provide credibility and access to markets, the efficient capital rules lead to higher returns on equity that benefits shareholders. He added that Lloyd’s global licenses benefit ABIR members with Lloyd’s syndicates and that its specialty market business creates business opportunities.
Lloyd’s, Bermuda, Reinsurance, Brad Kading, ABIR, Europe, North America