Despite challenging market conditions reinsurers are still confident in the overall state of the Bermuda re/insurance market, according to the latest figures from the Bermuda Monetary Authority (BMA).
The BMA said that based on the most recent information based on annual filings overall Bermuda’s re/insurers recorded $108.5 billion in net premiums in 2015 (down on the previous year’s figure of $116.2 billion), held $200.8 billion of capital (again, down on the previous year’s $214.5 billion) and had total assets of $631.7 billion (an increase on the $583.3 billion listed in 2014). Full data for 2016 is not yet available.
According to the BMA, the year-on-year movement in the statistics – 2015 data compared with 2014 data – was consistent with challenging market conditions over the same period. However, despite a decrease in premiums written and an increase in liabilities held, the re/insurers’ assets increased by nearly $50 billion, demonstrating confidence in the Bermuda market.
Commercial Classes reported net premiums of $63.1 billion (previously $76.7 billion), held capital of $125.3 billion ($135.2 billion) and had total assets of $436.7 billion ($387.0 billion).
“These statistics illustrate the continued strength of Bermuda’s re/insurance market and highlight the domicile’s position of high repute in the world’s risk transfer industry,” said Craig Swan, managing director – supervision at the BMA. “Bermuda is one of seven countries having US Qualified Jurisdiction Status and one of two countries assessed as being fully equivalent under Solvency II.
“Bermuda’s positive reputation means that more re/insurers are controlling and managing the primary operations of their group structure from Bermuda. In the Authority’s 2017 Business Plan released this month, the Authority said it will continue to strive to improve its performance, relationships and operations in 2017. Bermuda’s reputation as a financial centre depends on the Authority’s ability to continue executing and consistently delivering supervision to the high standard expected of it.”
The BMA added that Bermuda’s captive sector enjoyed an increase in net premiums over the same period, writing $45.4 billion (previously $39.5 billion), held capital of $75.5 billion ($79.3 billion) and had total assets of $195.0 billion ($196.3 billion).
Bermuda Monetary Authority, BMA, Reinsurance, Craig Swan, Bermuda