Bermuda market affected by cat losses of 2011

Almost half of the reinsurers based in Bermuda reported net losses last year due to significant catastrophe activity, according to the Association of Bermuda Insurers and Reinsurers (ABIR).

Ten out of 22 member companies of the ABIR reported net losses, but premium income for the entire group rose to $65 billion in 2011, up from $62 billion the year before. Net income for all members was $1.5 billion, down from $11.4 billion in 2010. Shareholder equity for the group remained steady at nearly $90 billion.

“One of the great stories of the mega-cat loss year of 2011 is that global reinsurers absorbed 45% of the $105 billion in record-setting catastrophe losses,” says Bradley Kading, ABIR president and executive director. “Risk spreading, pooling and diversification work. . . It’s remarkable that the (re)insurers in the ABIR membership could absorb record setting catastrophe losses yet on average continue to maintain a steady, solid capital base.”