Bermuda is in the world's top three reinsurance centres with 12 of its reinsurers in the top 40 global companies, a report by a leading US business school has revealed.

The findings of the study published by Professor David Cummins, a Harry Loman Professor Emeritus of Insurance and Risk Management, were revealed to The Royal Gazette by Roger Gillett, chairman of the Bermuda Insurance Development Council at the Risk and Insurance Management Society (RIMS) 2008 conference weeks before its official release in June.

The report surmised that the Island's reinsurance industry derives much of its success from being clustered together in one place, highlighting its value to other global markets.

Based on Bermuda and the economies of agglomeration, the report was completed by Dr. Cummins and his research staff at The Wharton School, University of Pennsylvania, and, The Fox School, Temple University.

It shows that Bermuda is by far the largest supporter of home owners' insurers in the US and is the number one jurisdiction world-wide for cessions by the top US firms in all of the 12 main lines of business.

Bermuda and the Caribbean made up 53 percent of cessions by American companies in 2005, comparing favourably to 41 percent by the UK, Germany and Switzerland combined.

"We used to be able to say that Bermuda was good for niche markets, but now we are big in all areas, according to this report," said Mr. Gillett.

"The report says that Bermuda has matured over the years and what Dr. Cummins has also pointed to is something that many companies that arrive in Bermuda are looking for and that is speed to market, which has become an important criteria when they consider where to form new companies.

"They are offered the speed of incorporating and licensing in Bermuda which is critically important, but it is also the fact that when companies set up in Bermuda they are able to write business almost immediately because of the support structure of the brokers that exists.

"While Dr. Cummins has pointed to a more flexible regulatory approach, he goes on to say that it is not at the cost of a higher insolvency risk as the Bermuda market continues to be populated by companies with a superior financial strength and stability."

The study goes on to compare how the Island's companies have performed against firms from other parts of the world, finding that over time they have done well, but they also show some volatility due to their exposure to catastrophic events.

But its value to the US market is clear, according to the report, which reveals that Bermuda was the second largest source of funding for paying out hurricane claims at 27.5 percent for Wilma and 26.2 percent each for Rita and Katrina, behind the US itself, which accounted for 32.5 percent, 32.8 percent and 40.1 percent respectively.