Eight Bermuda insurers formed less than a decade ago to take advantage of the lack of global property catastrophe in the wake of Hurricane Andrew. It was
insured, but damages were estimated at $30.48 billion.
In 1993 alone $4 billion in reinsurance assets arrived in Bermuda. Focused underwriting led to some highly successful years, but as more people joined the bandwagon, prices went down each year.
Bermuda insurers stayed on top by mergers and acquisitions and diversification has helped strengthen the companies.
Ace bought up Tempest Re and CAT Ltd. It also owns Coda D&O, Ockham Worldwide, Westchester Fire Insurance Co, Methuen, Tarquin and Cigna Property/Casualty.
XL Capital, which had founded 25 percent of Mid Ocean Re, bought up the remaining 75 percent. XL also owns GC Re, Broackbank, Latin American Re, NAC Re, Le Mans Re, and the Intercargo Corporation.
Partner Re has acquired French reinsurer SAFR and the global reinsurance operations of Winterthur Insurance Group.
La Salle Re is the latest to join the consolidation trend and is merging with the Trenwick Group to create a global reinsurer.
Two more companies announced they were moving to Bermuda last year, Everest Re and PXRE, and a new reinsurer, Max Re, has just been formed on the Island.
