Bermuda sees re/insurance registration increase, including SPI’s

by Artemis on April 6, 2018

The Bermuda Monetary Authority (BMA) has reported an increased number of insurance and reinsurance company registrations on the island in the first two months of 2018, which was helped by an increase in the number of special purpose insurers (SPI’s) being registered for ILS transactions.

Bermuda reinsurance marketThe data shows that the capital markets remain a vital component of the Bermuda reinsurance market and also that the market itself is healthy, with the number of companies being registered increasing year-on-year.

In the first two months of 2018 Bermuda saw the registrations of 11 new insurance and reinsurance vehicles, including three Class E Long-Term (life) commercial re/insurers and one general business Class 4 commercial re/insurer, as well as one intermediary.

This compares to the registrations of just five new re/insurers in the first two months of 2017.

During the two month period of 2018, Bermuda saw the registration of three special purpose insurers (SPI), all of which are catastrophe bond or other insurance-linked securities (ILS) vehicles.

A year earlier, just one SPI was registered in the first two months of 2017, so it appears that Bermuda is seeing healthy growth across the range of insurance and reinsurance companies it plays host to, with the capital markets activity in reinsurance continuing to drive business in the islands direction as well.

Craig Swan, BMA Managing Director, Supervision (Insurance), commented, “This increased (re)insurance activity follows on the heels of the third anniversary of Bermuda being placed on the National Association of Insurance Commissioners’ (NAIC) Qualified Jurisdiction list (effective 1st January 2015), as well as the second anniversary of Bermuda achieving full equivalence under all three Articles of Solvency II (effective 24th March 2016).”

“The BMA is pleased to see these increased (re)insurance registrations, despite challenging market conditions,” Swan also said.

The number of SPI’s is rising as well, with more set to be included in the BMA’s March registration statistics, including the recently registered Kendall Re Ltd. for re/insurer Aspen’s new catastrophe bond issuance, United’s Armor Re II Ltd. (Series 2018-1) cat bond vehicle and Safepoint’s new SPI for its latest cat bond Manatee Re II Ltd. (Series 2018-1).

Given the robust issuance seen in first-quarter 2018 catastrophe bond issuance, as detailed in our latest report, it is likely that Bermuda will benefit from a significant number of new SPI registrations through the remainder of this year.

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