Bermuda reinsurance market continues to expand

By Andrew Barile

Andrew Barile Consulting Corporation


The Bermuda reinsurance company market has certainly grown since 1978, when I did the first public offering of a Bermuda reinsurance company, ANECO Reinsurance Company Ltd., in Hamilton, Bermuda. Today, Hamilton has more office buildings now than Bermuda shorts clothing shops. The 65,000 inhabitants of Bermuda have enjoyed the growth as well, as the Bermuda taxi-cab driver boasts about the multiple million-dollar homes at the Tucker Bay Club. Michael Douglas, Michael Bloomberg and others come into Bermuda Airport with some 30 corporate aircraft, some coming to attend the Goldman Sachs Asset Management Conference, the Hedge Fund Conference sponsored by Ernst & Young, and some others for tax discussions.

So, the capital and surplus of Bermuda's 1,305 insurance companies approaches $160 billion.

There are 38 Class 4 Bermuda insurers -- insurance and reinsurance companies capitalized at a minimum of $100 million, with gross written premiums of $32.2 billion and assets of $135 billion.

Selected Bermuda insurance/reinsurance companies:
  • ACE $16 billion shareholders' equity
  • AEGIS $1.08 billion shareholders' equity
  • Max Capital $1.512 billion shareholders' equity
For Bermuda-domiciled insurance companies, mergers and acquisitions will continue to assume greater prominence, and success will depend on being able to base deals on long-term strategic goals and having the necessary capabilities to execute mergers quickly and effectively.

These companies will continue to look at the power of advanced analytics; not only in underwriting and investment management, but also in claims administration, distribution management and pricing. Bermuda insurers will need to analyze data in real time and distribute the results immediately via mobile technology.

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