Bermuda’s foreign portfolio holdings surged past $1.19 trillion last year, driven by sharp growth in the insurance sector and a significant jump in exposure to the United States, according to the Bermuda Monetary Authority’s latest Coordinated Portfolio Investment Survey.

The BMA reported that total portfolio assets rose 13.8 per cent year-on-year, largely owing to a 15.4 per cent increase in foreign portfolio holdings held by commercial insurers. The authority said the US accounted for the majority of those gains, noting that “the US accounted for 67.1 per cent ($799.7 billion) of the total holdings, an increase of 29.3 per cent ($181.1 billion) over 2023”.

Total financial services assets in Bermuda climbed to $2.19 trillion, with portfolio holdings making up 54.4 per cent of that figure.

According to the authority: “Bermuda’s financial services total assets totalled $2.19 trillion, an increase of 11.8 per cent. At the same time, Bermuda’s foreign portfolio investment assets remained over $1 trillion ($1,192 billion).”

Insurance companies held 80.9 per cent of all foreign portfolio assets, which the report said points to the sector’s position at the centre of Bermuda’s international business model.

The BMA noted: “The insurance subsector has always dominated Bermuda's foreign portfolio holdings.

“It had an ownership share of 80.9 per cent ($963.9 billion).”

Portfolios were heavily weighted towards fixed income. The report stated that “Bermuda’s holdings of foreign debt securities amounted to $1,026.2 billion, representing 86.1 per cent of Bermuda’s total foreign portfolio holdings”, with long-term debt making up more than 93 per cent of that total.

Despite the overall increase in assets, equity exposure declined. The authority reported that “equity holdings amounted to $165.4 billion, representing 13.9 per cent of Bermuda's total foreign portfolio holdings”, a fall of 20 per cent from the previous year.

The BMA said non-resident holdings of Bermudian-issued securities also grew, though more modestly. “In 2024, the value of Bermuda's derived liabilities amounted to $539.3 billion, an increase of 3.1 per cent ($16.4 billion) over 2023.” The majority — nearly 80 per cent — were equity instruments.

The US and Hong Kong together accounted for 62.5 per cent of all derived liabilities.

The BMA highlighted that global cross-border securities holdings reached $86.9 trillion, up 7.6 per cent year-on-year. Bermuda’s expansion outpaced that global growth rate, though other international financial centres, such as Hong Kong, Cayman and Ireland, grew even faster.

The report noted that “global holdings totalled $86.9 trillion, an increase of 7.6 per cent … compared to $80.8 trillion at the end of 2023”.

The CPIS is an annual International Monetary Fund-backed survey that shows how much money Bermudian-based financial institutions invest overseas and where that money goes.

Because Bermuda is a global insurance and reinsurance hub, these foreign investments total more than a trillion dollars and help illustrate the true size of the island’s international business sector.

The report also shows which countries hold Bermudian-issued securities, giving regulators and analysts a clearer picture of global capital flows.