Bermuda re/insurance registrations up, SPI’s grow their share

by Artemis on July 29, 2013

The Bermuda insurance and reinsurance market saw 34 new insurer registrations during the first-half of 2013, up from the 24 registered in the first-half of 2012 a year earlier. Special purpose insurers (SPI’s) make up a growing contribution to these statistics, with 20 of the total registered being new SPI’s so far in 2013.

The second-quarter of this year has been particularly active in terms of new re/insurer registrations in Bermuda, with 21 new registrations compared to 13 from the first-quarter. The new registrations seen in 2013 reflect the diversity of Bermuda’s insurance and reinsurance market and span the market, from captive insurers, to commercial carriers, to catastrophe bond vehicles and long-term life insurance businesses.

Of the registrations seen in 2013 the majority are special purpose insurers (SPI) which reflects the growing interest in reinsurance-linked investments, ILS and third-party reinsurance capital management. SPI’s range from issuing vehicles for catastrophe bonds and insurance-linked securities, collateralized reinsurance vehicles, reinsurance sidecars and retrocession underwriters.

“In addition, 12 of the new registrations for Q2 2013 were Special Purpose Insurers (SPIs) with anticipated premiums of over $700 million,” Shelby Weldon, Director, Licensing and Authorisations commented. “These registrations included six SPIs underwriting over $1 billion of excess of loss property catastrophe reinsurance business over the next five years.”

The SPI’s registered in Bermuda during 2013 are projected to underwrite over $5 billion of reinsurance business over the next five years, across property catastrophe reinsurance, retrocession, industry loss warranties, cat bonds and ILS.

The SPI’s registered in the first half of 2013 are listed below and where possible we’ve linked to more details from our catastrophe bond Deal Directory or from our previous stories. Ten of the 20 SPI’s established in the first-half of the year are known catastrophe bond issuance vehicles which between them have issued $2.114 billion of risk capital this year.

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