NU Online News Service, Feb. 16, 2:41 p.m. EST
The Bermuda insurance market continued to record strong performance against the backdrop of a prolonged soft market and the effects of the worst financial crisis in a generation, the Bermuda Monetary Authority reported today.
The latest available figures show that Bermuda's insurers had aggregate total assets of $472.9 billion, which represents a 7 percent increase over the $442.2 billion achieved the previous year.
Gross premiums written totaled $123.5 billion, achieving a similar volume of business of $124.4 billion the previous year, despite the challenging economic conditions. Of that total, the commercial sector wrote $103.4 billion in gross premiums written.
Bermuda said its captive sector also maintained significant results, writing $19.6 billion in gross premiums written.
Jeremy Cox, chief executive officer of the Authority, said, "The Bermuda market continued to record impressive results in challenging economic conditions. The market has fared very well, reporting significant results both in underwriting premiums and total assets. We're pleased to see that the commercial sector remains strong."
He noted that the almost $20 billion in gross premiums written by the captive sector and the total number of 885 Bermuda captives "supports Bermuda's position as the leader among captive domiciles."
Mr. Cox said that some companies did experience losses over the past year impacting capital levels, but "the market still remains highly capitalized and these losses were primarily related to impairments within their investment portfolios, in line with global trends."
He added, "Overall, these results indicate the continued resilience of the Bermuda market, and ongoing confidence in Bermuda's position as a leading center for insurance and reinsurance business globally."
According to the BMA, incorporations increased slightly during 2009: a total of 42 new (re)insurers were established in the Bermuda market during the year, as compared to 40 in 2008.
Most of the new market entrants for 2009 were a combination of captive and commercial insurers. The companies covered various lines of business, including property and catastrophe and professional liability; there was also increased interest from the life insurance sector, which in turn brought increased assets and new capital to the market. The greatest proportion of business came from the United States during the year, with respect to both the captive and commercial markets.
Mr. Cox added, "We are pleased to see that Bermuda continues to attract high-quality business, looking for experienced business support in a well-regulated environment. In addition, the continued disciplined underwriting by Bermuda firms throughout the year, as well as the Authority's proactive and measured approach to supervision, has assisted the jurisdiction in weathering a tough financial storm."
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