Special Purpose Insurers Continue to Lead Bermuda’s New Registrations

SPIs in Bermuda

Source: Source: A.M. Best - Jeff Jeffrey | Published on August 26, 2013

Property/Casualty insurance
P&C underwriting losses

Special purpose insurers are continuing to drive Bermuda's recent uptick in new registrations, the Bermuda Monetary Authority.

Thirteen new insurers entered the Bermuda market in July, seven of which were SPIs.

"We registered seven SPIs with projected premiums in the first year of operations of over $151 million," Shelby Weldon, director, licensing and authorizations at the BMA, said in a statement.

The BMA said the new SPIs are projected to underwrite more than $1.7 billion over the next five years across a range of business activities, including: property catastrophe reinsurance; life and annuity; as well as catastrophe bonds.

Additionally, several of the new registrants were captives, the BMA said.

Weldon said the total number of captives registered in Bermuda has remained steady over the past three years. "New captives continue to enter Bermuda," he said. "In addition, suggestions of a growing trend of captives redomiciling back onshore have not been the experience of the Bermuda market."

Overall, the BMA said 47 insurers have registered to enter the market during the period ending in July. That marks an 81% increase over the same period in 2012.

For the first half of 2013, 34 new insurers had registered in Bermuda, up from 24 insurers for the same period last year. It also represents an increase from the first quarter, which saw 13 new companies registered, compared with 21 new companies in the second quarter, the BMA said last month