SPI’s drive Bermuda re/insurer registrations up 60% year-on-year in 2013

Registrations of new insurance and reinsurance entities in Bermuda reached 53 by the end of September, which is 60% up on the first nine months of 2012. Special Purpose Insurers (SPI) continue to drive much of this growth, with 29 new SPI’s registered in the first three-quarters of 2013.

Bermuda has seen strong interest in the formation of new insurance and reinsurance entities on the island in 2013. It’s not just SPI’s which have seen new registrations in 2013, up to the end of September the island had seen; 6 Class 1, 3 Class 2, 4 Class 3, 5 Class 3A,1 Class 3B, 1 Class A, 2 Class B, 2 Class C and 29 SPI’s formed.

As well as insurers, reinsurers and special purpose insurers, Bermuda has seen a number of new intermediaries formed in 2013. 4 new insurance agents have formed, 6 insurance managers, 6 brokers and 1 salesman. A few of the new intermediaries are managing entities for established insurers or reinsurers third-party reinsurance capital management units.

SPI’s are clearly of most interest to the Artemis audience, given their use as cat bond or ILS issuing vehicles, sidecars and other collateralized reinsurance tools. There were no new SPI’s formed in September, while two formed in August. This shows the lull in issuance of catastrophe bonds during the hurricane season, which typically use special purpose vehicles as issuers. Formation of SPI’s is expected to pick up again as we move towards the end of the year. We may also see new sidecars launched for the January renewals which choose to register on the island.

Just over half of the 29 new SPI’s formed in 2013 have been used as catastrophe bond issuers. A number of others are collateralized reinsurance vehicles, sidecars or other alternative reinsurance capital vehicles, clearly showing that Bermuda continues to be an attractive domicile for the insurance-linked securities and alternative reinsurance capital markets.

Here’s a useful list of all the SPI’s registered in 2013 in Bermuda up to the end of September. Where possible we’ve linked to more details from our catastrophe bond Deal Directory or from previous articles. 15 of the 27 SPI’s established in the first-half of the year are known catastrophe bond issuance vehicles which between them have issued $2.999 billion of risk capital this year.

Also read our recent article on the Bermuda Stock Exchange’s listed ILS & cat bond volume jumping 45% to $8.4 billion in 2013.

• Skyline Re Ltd.
• Bosphorus 1 Re Ltd.
• Lorenz Re Ltd.
• Accordian Reinsurance II Limited
• Mona Lisa Re Ltd.
• Collateralized Re (L) Ltd.
• Merna Re IV Ltd.
• Tar Heel Re Ltd.
• Altair Re Ltd.
• Kiskadee Re Ltd.
• Sanders Re Ltd.
• Vector Reinsurance Ltd.
• Sunshine Re Ltd.
• Armor Re Ltd.
• Phoenix CRetro Reinsurance Company Ltd.
• Blizzard Re Ltd.
• Link Specialty Re Ltd.
• Queen Street VIII Re Ltd.
• Tramline Re II Ltd.
• Kinesis Reinsurance I Ltd.
• Tradewynd Re Ltd.
• Peregrine Reinsurance Ltd
• SH Hamilton Harbor SPI II Ltd.
• MetroCat Re Ltd.
• Sullivan Re Ltd.
• Northshore Re Limited
• New Point Re VI Limited
• Nakama Re Ltd.
• Multi-Strat Re Ltd.