Five new insurance companies were handed licences to do business in Bermuda last month compared to seven new licences being granted during the same period a year prior.

One class one insurer (PCCW Risk Financing Limited) was added on 14 March, while a class two insurer (Transworld Casualty and Indemnity Insurance Company Limited) was licensed for business on 18 March.

There were also three new class three insurers licensed during the period, with Ritchie Re Ltd., Ritchie Re Broad Strategy Ltd. and Nissan Global Reinsurance Ltd. all being given licences by the Insurance Division of the Bermuda Monetary Authority (BMA) during March.

The March 2005 licensing activity compares to licences being granted to one class one, three class two, two class three and one long-term venture during the same period in 2004.

In neither period were any class four licences 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.