International business sector activity increased last year for the first time since 2007, recording a 0.7 percent rise in economic activity. Government said. Gross value added rose by $10.2 million in 2012 as reinsurance companies bounced back from huge catastrophe losses suffered in 2011, the Department of Statistics release said.

Larger profits were driven by substantial premium increases and strong investment returns.

And these higher profits translated into increased compensation for employees and a higher economic contribution to Bermuda's GDP in 2012, Government said.

At the end of the year, 292 fewer international companies were registered in Bermuda with 210 fewer jobs available in the industry.

Despite these job cuts, the international business industry still remained the largest private sector employer, the figures showed.

“The marginal increase in international business activity did not translate into greater demand for local business services,” the statement said.

“The economic contribution of companies offering support services to international businesses such as legal, accounting and management services continued the downward trend displayed since 2009, falling a further 4.4 percent in 2012.”