SPI’s continue to dominate Bermuda’s 2013 re/insurer registrations

By added on 23/08/2013

Registrations of new insurance and reinsurance entities in Bermuda continued at a rapid pace in July, with Special Purpose Insurers (SPI) again leading the way, reports Artemis.

There were 13 new re/insurer registrations in the Bermuda market during July, according to the Bermuda Monetary Authority (BMA), with seven being SPI’s.

Year to date Bermuda has now seen 47 new insurer registrations by the end of July, up by 81 per cent from the 26 insurers registered in the first seven months of 2012. New entrants in July spanned the entire range of insurance classes available in the Bermuda market. Over half of the registrations in 2013 are SPI’s, 27 in total, and of those 27 SPI’s just over half, 14, have been used to issue catastrophe bonds.

Shelby Weldon, Director, Licensing and Authorisations at the BMA said; “Registrations in July were predominantly Special Purpose Insurers (SPIs) – we registered seven SPIs with projected premiums in the first year of operations of over US$151 million.”

The 7 new SPI’s are projected between them to underwrite over US$1.7 billion over the next five years, across a range of re/insurance business from property catastrophe reinsurance, to life and annuity, as well as (of course) catastrophe bonds.

A number of new captive insurance companies were also registered in July, as these continue to see favour as a vehicle for risk transfer across multiple lines of business. Bermuda has managed to hold onto the captives it has registered over the last few years, with registration numbers remaining steady.

Weldon commented; “New captives continue to enter Bermuda. In addition, suggestions of a growing trend of captives domiciling back onshore have not been the experience of the Bermuda market. In fact, during the first seven months of 2013, no Bermuda captives have domiciled to other jurisdictions, either onshore or offshore. Overall, during the past three years, a total of 12 captives have moved to another location.”