Bermuda's captive industry accounted for almost one third of business written globally during 2008, according to the latest figures from the Bermuda Monetary Authority (BMA).

The BMA's Regulatory Update for September 2009 revealed that the Island's captives made up $6.2 billion of the total $19.8 billion gross premiums written, with the majority of risk continued to be taken on from North America at 58 percent.

The third Annual Market Survey on Captives 2009, which was carried out by the BMA and the Bermuda Insurance Managers Association, and aims to gain up-to-date and detailed information on the state of Bermuda's captive market, showed a rise of approximately two percent in gross written premiums for the market over the past year, up $4 million from two years ago.

The report, which was published this week, reflected a geographical diversification trend in the Island's captive industry since 2003 due to sharp increases in business conducted with the Caribbean and South America, and, to a lesser extent, Europe, while business from North America climbed by about $1 billion over the same period.

The findings revealed that Bermuda captives wrote nearly two-thirds or $12.9 billion of all business in casualty coverage, while property accounted for $6.3 billion and financial "all other" amounted to $600 million.

Furthermore, the four largest lines of property business were property damage and business interruption (64 percent), marine hull and cargo (11 percent), auto property damage (six percent) and aviation hull and cargo (six percent).

The four biggest casualty lines by percentage share included general liability (31 percent), works compensation/employers liability (29 percent), professional liability, other (11 percent) and medical malpractice (nine percent).

On the balance sheet, the study indicated a decline in assets from a record total of $88.8 billion in 2007 to $84.1 billion last year, driven by fall-offs in invested assets, particularly in equities, which were down sharply from 2007. Quoted investments comprised bonds (80 percent), equities (13 percent) and all other types (seven percent) in 2008, totalling $38 billion, with cash and quoted investments combined making up almost two thirds of all assets, underlying a strong balance sheet position despite the overall fall.

The BMA's survey also showed that despite a reduction in capital and surplus experienced last year, the Island's captives still maintained healthy capital positions, with statutory capital and surplus at 86 percent of loss and loss expenses provisions, many times the regulatory requirement for any captive class.