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Member, Beacon International Group, Ltd.
HAMILTON, Bermuda—The number of captive insurance companies in Bermuda dropped slightly in 2010, but their gross written premiums increased 66% to $32.6 billion, according to the Bermuda Monetary Authority.
There were 845 captives in Bermuda at the end of 2010 compared with 885 at the end of 2009, the BMA said Monday. The reduction can be attributed in part to the BMA’s reclassification of certain firms as well as the “routine cycle” of mergers and deregistrations “common to global insurance markets,” Shelby Weldon, the BMA’s director of insurance, licensing and authorizations, said in the statement.
The increase in captives’ gross written premiums can be attributed to “significantly higher premiums being written by particular entities in the sector,” as well at the reclassification of certain companies to “more accurately reflect their risk profiles,” the BMA said.
During 2010, 35 new insurers and reinsurers registered in Bermuda compared with 37 new companies in 2009, according to the BMA.
Most new companies were captives or commercial insurers that underwrite various lines of business including property and catastrophe and professional liability coverage, Mr. Weldon said in the statement.
“The greatest proportion of business came from the United States during the year, with respect to both the captive and commercial markets,” he added.
Overall, the gross written premiums of insurers and reinsurers in Bermuda fell slightly to $119.7 billion in 2010 compared with $123.5 billion in 2009.
The aggregated total assets of insurers in Bermuda increased to $496 billion in 2010 compared with $472.9 billion in 2009.