Bermuda is still streets ahead of the rest of the competition when it comes to the reinsurance market according to the latest Reinsurance Association of America report.

The amount of premiums ceded to the Island's affiliated reinsurers (a subsidiary of a company based outside the US) has grown from $8.825 billion in 2002 to $18.474bn in 2006.

In comparison, the nearest competitor is Switzerland with $7.991bn in premiums ceded last year, while Germany and the Cayman Islands are one of the biggest losers, seeing a decline of almost $4bn and $500m over the same five-year period.

The report focuses on offshore reinsurance in the US market, featuring the Caribbean islands bases such as Barbados and the Cayman Islands and the European stronghold in the UK, Switzerland and Germany.

Brad Kading, president and executive director of the Association of Bermuda Insurers and Reinsurers (ABIR), said the findings were in line with what he expected.

"It is just consistent with the past reports going back to 2002 ¿ it is just a continuation in the trend," he said. Mr. Kading explained the peaks and troughs in values could be accounted for by the big natural disasters around the world and other significant global events.

Following 9/11 in 2001, a number of new reinsurance companies were formed in Bermuda the next year, and then in the wake of Hurricane Katrina in 2005, further companies established themselves on the Island.

"Over this five-year period in terms of reinsurance carriers we have had two periods where there were several company formations," said Mr. Kading.

That is particularly prevalent on the Island in 2005 when $18.59bn was ceded to affiliated offshore reinsurers, a figure that has not been bettered by any nation over the last five years.

Germany also recorded a similarly high volume two years ago, out of keeping with previous and future years, but that was down to the affiliation of two big reinsurers, America Re and Munich Re.

Of more interest to Mr. Kading, however, were the statistics for recoverables from affiliated offshore reinsurers, which reflected what has been happening in the Bermuda market over the past few years. "The recoverable numbers are significant ¿ they are what money is owed from non-US carriers to US carriers," he said.

"That is an example of the economic benefit of Bermuda carriers to the US market ¿ that is all the money that is going to be paid to US clients."

But, overall, Mr. Kading believes Bermuda's reinsurers are performing well on the world stage.

"Germany has been in the reinsurance market for hundreds of years, but Bermuda has only been there for 25 years and we are probably in sync with our peer groups in terms of related transactions," he said.

Bermuda is also leading the market in recoverables from affiliated offshore reinsurers, increasing from $17.858bn in 2002 to $33.065bn last year.

This time, Germany and Switzerland are the closest behind at $14.258bn and $14.245bn respectively in recoverables ceded, up on their initial figures of $8.235bn and $6.519bn respectively.

In terms of unaffiliated offshore reinsurers, Bermuda is again leagues ahead of its nearest rival, the UK, with more than $4,000m in premiums ceded at $8,982m compared to $4,630m.

That figure has risen steadily from $7.193bn in 2002 over five years, with Ireland and Barbados suffering the biggest losses of almost $900m and $400m respectively.

Recoverables for unaffiliated offshore reinsurers in Bermuda has also impressively blossomed, peaking at $16.673bn in 2005, up from $11.951bn in 2002, and settling at $13.416bn last year.

The nearest figure to touch that is that of the UK, which came in almost $2bn less at $11.53bn, with a big gap then to Germany on $5,347m.