BMA Figures Show Expansion Of Bermudian Insurance Capacity

by Amanda Banks, Tax-News.com, London

23 May 2003

Figures released by the Bermuda Monetary Authority recently have revealed the healthy condition of the island's insurance industry, which grew by one third in 2001, according to a report in the Royal Gazette.

The BMA's figures show that the value of net premiums earned in Bermuda in 2001 amounted to $41.6 billion, whilst gross premiums before factoring in reinsurance stood at $49 billion. As of December 31, 2001, capital and surplus equalled $65.8 billion with total assets hitting a record level of $172.6 billion. Also, some $26.6 billion in new assets were accumulated during 2001.

When compared to other important international insurance centres, such as Lloyds of London, Bermuda's insurance market stands up well. The total reinsurance capacity of Lloyds, which is the most important measure according to the Gazette's report, stands at $23.2 billion in 2003, which is just over half of Bermuda's $41.6 billion capacity for 2001.

The BMA figures also revealed how the Bermudian market dwarfs its counterpart in the Cayman Islands, where net premiums as of September 2002 stood at $4 billion, one tenth of the value of Bermuda's net premiums.

Given that these statistics are now two years old, it is widely perceived that new capital injected in the last year has pushed Bermuda's net capacity near to $50 billion, local brokers told the Gazette.

The report, which is the first since the jurisdiction underwent regulatory restructuring, revealed that eight major insurance firms incorporated on the island in the last quarter of 2001, following the September 11 tragedies.

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