Bermuda attracted 93 insurance companies to incorporate on the Island in 1997, a small decline from the 97 set up here in the previous year, according to statistics released yesterday.

There were also 76 removals from the register, compared to 28 in 1996, and 46 in 1995. The new formations and removals brought the total number of insurance companies on register to 1,487 as at December 31, compared with 1,470 at the end of 1996.

Registrar of Companies Kymn Astwood described the number of new incorporations as "impressive'' considering the predominantly soft insurance market.

"We are increasingly known as one of the most innovative insurance centres in the world and I think that this reputation along with the unencumbered nature of our capital and the professional expertise that now resides in our insurance industry has helped fuel the continued growth of the Bermuda market,'' he stated in a press release.

A record 35 percent of the insurance formations during 1997 were in Bermuda's Class 3 category. The category includes rent-a-captives, finite reinsurers, reinsures writing third-party business, insurers writing direct policies with third-party insureds and captives deriving more than 20 percent of their net premium income from unrelated risks.

Another trend the Registrar of Companies noted was the surge in the incorporation of healthcare captives, and captives with insurance company parents.

A record 11 healthcare companies were set up in 1997 compared to just four in 1996. New sources of business came from Argentina and Brazil, with deregulation allowing Bermuda's commercial insurers and reinsurers to make greater inroads into the Latin American continent. The bulk of beneficial owners of new insurers last year continued to be in the US and Europe.

The Registrar of Companies stated he expected risk managers there to show continuing interest in Bermuda's alternative approach to risk transfer.

BUSINESS BUC