A total of 82 new reinsurers were established in Bermuda in 2006. The majority of these new companies were large, highly capitalised reinsurers. Captive insurance companies also formed a significant proportion of the new incorporations.

The 82 new Bermuda incorporations for 2006 compare very favourably with figures recorded by other jurisdictions such as Vermont, which had 37, South Carolina with 29 and the Cayman Islands with 50.

“We are very pleased to see this significant increase in the number of new reinsurance companies in Bermuda,” announced Jeremy Cox, Supervisor of Insurance of the Bermuda Monetary Authority (BMA). “This is a clear indication of the continued confidence the market has in Bermuda as a leading global insurance and reinsurance centre, and the practical, effective regulatory framework in place here.”

Cox added that Bermuda recognised the continued significance of the captive market as core business for the jurisdiction, and remained focused on maintaining its leadership position as a captive domicile: “There is a collective recognition and commitment to the fact that captives remain a key element of the mix of high quality reinsurance business conducted in Bermuda."

“For example the BMA is very supportive of initiatives such as the Bermuda Captives Conference, and being part of Bermuda’s presence at other international events focused on captive business,” he stated. “However it is good to see that overall Bermuda continues to be a very attractive domicile and good business choice for large commercial reinsurers and captives, as well as the primary market.”

This point has been borne out by activity in the Bermuda market in recent months. One of the latest examples includes the establishment in Bermuda of Class 4 insurer Ironshore Ltd., as well as the wave of reinsurance companies from the UK - including Hiscox Re, Omega Re and Amlin Re - that selected Bermuda as their base during the year.

“From a licensing perspective, it certainly has been a very busy year and of course I am happy to see the final numbers surpass those of 2005,” announced Shanna Lespere, Deputy Director at the BMA and head of the Licensing and Authorisation team within the Insurance Department.

“The continued interest and increase overall in captives as well as the commercial reinsurance companies adds to the strength of the Bermuda market,” she continued. “Over the past year on the captive side we have continued to see interest surrounding Bermuda's servicing of the healthcare industry, as well as renewed interest in employee benefit programme solutions."

“On the commercial side, it was no surprise that the most significant trend of the year related to the formation of a number of sidecars, which entered the market to take advantage of capacity gaps in the property and catastrophe arena. Even in the early part of 2007 we continue to see interest in this area,” Lespere explained.

“However, I believe that the jurisdiction's success is highlighted in not just the number of incorporations," she added, "but also the high quality of the sponsors behind these companies, as well as the continued increases in premium volume written we have been recording over the years.”

Statistics for 2005, the latest available, show a total of $100.7 billion gross premiums written by the Bermuda market, compared to $95.3 billion the previous year.