Five new insurance companies were handed licenses to do business in Bermuda last month compared to only two new licenses being granted during the same period last year.

Three of April's five new incorporations were captive companies, or vehicles set up to insure their parent companies, according to data from the insurance division of the Bermuda Monetary Authority (BMA).

There were two class one, or single parent captive, incorporations during the period, with Energy Risk Limited and Insurance Services (Bermuda) Ltd. both being added to the insurance register.

Lucent Insurance Ltd. was given a class two license, which are designated for multi-parent captive companies.

Two new class three insurers were also licensed during the period ? Inner Circle Insurance Company, Ltd. and Insurance Solutions Ltd.

There were no class four licenses given out. These companies are the high-profile re/insurers required to maintain minimum capital and surplus of $100 million. Bermuda has not attracted a class four insurer since the licensing of CIG Reinsurance Ltd. at the end of September last year, according to BMA records.

Class one insurers are classified as single parent captives ? a self-insurance mechanism ? while class two ventures are multi-owner captives. Class three insurers do not fall into the class one or two captive categories but may besingle-parent, group, association, agency or joint venture captives where more than 20 percent of net premiums written is from risks which are unrelated to the business of the owners. They can also be finite reinsurers; reinsurers writing third party business or insurers writing direct policies with third party individuals.