Swiss Re Insurance-Linked Fund Management

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Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

Bermuda registers 51 SPI’s in 2013, up 89% year-on-year

  • 21st January 2014 - Author: Artemis
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New registrations of Special Purpose Insurers (SPI) drove the number of newly registered insurers in Bermuda to 91 in total for the year 2013, with 51 of those SPI’s, according to annual statistics from the Bermuda Monetary Authority (BMA).

The 91 new registrations of insurance and reinsurance companies and vehicles in 2013 was a 72% increase on the 53 firms registered in Bermuda in 2012. 51 of the 2013 registrations were SPI’s, which is a huge 89% increase on the 27 registered in Bermuda a year earlier in 2012, further demonstrating the attractiveness of the domicile for insurance, reinsurance and insurance-linked securities (ILS) business.

Registrations covered both traditional insurance and reinsurance and the growing non-traditional markets. In 2013 there were 24 new captive insurers, double the total registered in 2012, as well as 16 commercial insurers and the 51 SPI’s.

Jeremy Cox, CEO of the Bermuda Monetary Authority commented on the level of registrations; “Achieving this level of business in today’s competitive environment reinforces Bermuda’s unique ability to service the full spectrum of high-end, global (re)insurance business.”

The new registrations, particularly the high number of SPI’s, show Bermuda’s ability to capitalise on the growth of the alternative reinsurance market and investor interest in ILS and reinsurance as an asset class. Mr. Cox continued; “It also demonstrates the continued relevance of Bermuda as a jurisdiction as the market seeks diversification in risk transfer, with alternative products increasingly complementing traditional reinsurance.”

It’s by no means just alternative reinsurance business locating to Bermuda; “The new registrations include significant firms in the traditional reinsurance space, including a Class 4 reinsurer,” explained Mr. Cox. “We also saw additional core business in the form of the 24 new captives registered during the year, building further on Bermuda’s leadership position in that sector.”

Bermuda has grown its share of the insurance-linked securities and catastrophe bond market considerably in 2013, by the end of which Bermuda accounted for $9.2 billion or around 41% of the near $21 billion outstanding ILS and catastrophe bond market. Read our recent article on the Bermuda Stock Exchange’s ILS and cat bond listings.

“Mr. Cox commented; The 51 new SPIs set up last year almost doubled the 2012 total, a remarkable achievement. This reflects to a great degree the significant work Bermuda’s industry service providers and the Bermuda Stock Exchange conducted during the year to promote Bermuda as the premier jurisdiction for ILS. Data from the Authority’s new Bermuda ILS Report issued late last year also highlighted that Bermuda has been successful in broadening the type of business being covered, as well as becoming the leading jurisdiction for ILS transactions. This would include traditional cat bonds, property and property catastrophe, along with other shorter-term risks.”

“Therefore, Bermuda has been able to build on our long-standing experience in insurance regulation and alternative risk transfer to create innovative opportunities for both investment and capital development, primarily for the US and European markets. Bermuda has balanced this with building further on the captive and commercial insurance platforms that have enabled business to grow here over many decades. We look forward to seeing another successful year of new registrations in 2014,” Mr. Cox closed.

Registrations in December were dominated by SPI’s, with 15 of the months 22 registrations in that category. A number were for catastrophe bonds which closed at the end of the year while some others were sidecars which Artemis has covered in recent weeks. Still more provide the role of underwriting collateralized reinsurance for dedicated reinsurance and ILS investment fund managers

All of the 51 SPI’s registered in Bermuda in 2013 are listed below. Where Artemis has covered the SPI in a news article, or catastrophe bond Deal Directory entry, the names are linked enabling you to read more about the majority of these vehicles.

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All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

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