New captives registered in Bermuda in 2013 double totals in 2012

Annual insurer registration statistics released Monday by the Bermuda Monetary Authority show that 91 new insurers registered in the country last year, including 24 new captives, doubling the total captives recorded in 2012.

The 91 new insurers registered represents a 72% increase over the 53 firms registered in 2012, notes a press release from the authority.

New insurer registrations in 2013 covered all classes of insurer, with the firms covering “both the traditional and fast-growing alternative risk transfer sectors of the insurance market,” the statement adds. There were 24 new captives in 2013 compared to 12 in 2012; 16 commercial insurers, compared to 14; and 51 special purpose insurers (SPIs), compared to 27.

Jeremy Cox, CEO of the Bermuda Monetary Authority, says the new registrations demonstrate “the continued relevance of Bermuda as a jurisdiction as the market seeks diversification in risk transfer, with alternative products increasingly complementing traditional reinsurance.”

Cox points to the record number of SPIs registered in 2013. Of the $21 billion of global insurance-linked securities (ILS) issuance by the end of 2013, $9.2 billion was sponsored by Bermuda-based SPIs, he says.

Further, data from the authority’s new Bermuda ILS Report issued in late 2013 highlighted that Bermuda has been successful in broadening the type of business being covered and becoming the leading jurisdiction for ILS transactions, he reports. This would include traditional cat bonds, property and property catastrophe, along with other shorter-term risks, he says.