13 May 2024News

Re/insurance growth shores up Bermuda credit rating

Solid growth in the re/insurance sector contributed to ratings agency S&P Global last week affirming Bermuda's A+ Sovereign Credit Rating, Bermuda's A-1 short-term rating and its AA+ transfer and convertibility assessment. S&P also maintained the "stable" outlook rating.

A Bermuda Government statement said S&P's sector report predicted Bermuda’s economy is on track to continue growing. 

"Solid growth reflects strength in the international business sector, where Bermuda is a global leader in the insurance and reinsurance sector. In addition, tourism continues to rebound from the pandemic," the Government statement said. 

"S&P highlighted in their report that, 'We believe that solid economic activity will support low fiscal surpluses over the next few years and limit the need for incremental new borrowing'." 

S&P also said: “The stable outlook reflects our expectation that the local economy will remain healthy, and support solid government finances and low debt, as well as Bermuda’s external asset position. We believe continued growth will support a balanced budget in line with the government’s expectation this year. We assume a commitment to fiscal consolidation will lead to balanced budgets and a slight decrease in net general government debt over the next three years.”

Premier David Burt stated: “The announcement from S&P reaffirming Bermuda's A+ Credit Rating, with a stable outlook following their April 2024 annual review, is an independent validation of this government's careful and thoughtful fiscal approach.

“The S&P rating serves as a validation of the Bermuda Government's efforts towards sustained economic recovery, and is a source of encouragement for the entire Bermuda community.

“Our A+ rating from S&P indicates a strong creditworthiness and financial stability. It signifies that the Bermuda Government can meet its financial commitments. This rating reflects confidence in the government's fiscal management, economic policies, and overall stability.

"This government is fully cognisant of the significance of Bermuda’s Credit Rating and is unwaveringly dedicated to taking all essential measures to uphold our ratings. Simultaneously, we remain steadfast in our commitment to our social agenda, striving to provide relief that alleviates the financial strain on numerous individuals and businesses."

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