Bermuda signed up 17 new captives last year
Bermuda was home to 739 active captive insurance companies as of the end of last year, according to financial-services regulator, the Bermuda Monetary Authority.
The BMA said 17 new captives were registered in 2017, up from 13 in 2016.
Jeremy Cox, the BMA's chief executive officer, said: “The majority of the new captives originated in the US but they also came from Europe, Canada, Australia and Latin America.
“Both Latin America and Canada have benefited from the business development efforts of the Bermuda Business Development Agency (BDA) and we have accordingly seen heightened interest from those regions.”
New 2017 captives covered a diverse range of risks, particularly among the Class 1 captives — those underwriting only the risks of their own parent companies and affiliates — which saw significant growth — 12 new Class 1s were registered in 2017 compared to four in 2016.
The new Class 1s covered a diverse range of risks, from Canadian conglomerates writing general liability and workers' compensation, to US healthcare captives insuring nursing homes and medical stop loss cover for employees.
“The BMA takes the role of gatekeeper to Bermuda's re/insurance market very seriously and every application undergoes intense scrutiny,” Mr Cox said.
“As supervisor, it is our job to ensure that Bermuda's outstanding reputation as a financial services centre remains intact.
“Bermuda remains the world's leader for captive formations, it's not about the number of captives on the Bermuda register; it's about the quality of the business being conducted here. That's the Bermuda brand and the BMA will continue to apply the regulation needed to protect it.”
Net premiums written by Bermuda's captives amounted to $54.7 billion, down from $55.3 billion in 2016.
Bermuda's captive register as at December 31, 2017, included:
• Class 1: 218 licences
• Class 2: 267 licences
• Class 3: 239 licences?
• Class A: seven licences
• Class B: eight licences
• For more information, read the BMA's report on the captive and special purpose insurer sector by clicking on the document under the heading of “Related Media” on this webpage