Abir members pump $815m into economy
The significant contribution to Bermuda by international insurers and reinsurers may become even more valuable, according to industry leaders.
A statement from the Association of Bermuda Insurers and Reinsurers noted that many of their members will be among the multinational enterprises targeted in the new minimum corporate tax regime the Government intends to implement soon.
A new Abir survey outlines the significant contribution to the community that members already make.
It said they contributed $815 million to the local economy last year – an increase of 13 per cent over 2021.
Contributions tallied included salaries and benefits paid to Bermuda-based employees, spend on travel and entertainment in Bermuda, including hotels, airfares, restaurants, taxis and catering, and nearly $6 million in donations to Bermuda charities.
Over the past 15 years, members also made an aggregate, direct economic contribution amounting to $12.84 billion.
The association represents the largest insurance and reinsurance employment on the island.
Last year, its member companies employed 1,585 people in Bermuda, up by 158 from 2021, of whom 1,103 were Bermudians (up by 145), including spouses of Bermudians and permanent resident certificate holders.
An Abir spokesman said the local component of the workforce was 70 per cent, due in large part to member company investment in career training, development and recruitment.
“Over 30 years, Abir members have shown their commitment to Bermuda by building a talent base that is more than two-thirds local and by continuing to drive the local economy,” Hamilton chief executive officer and Abir chair Pina Albo said.
She said that in 2022 it was especially pleasing that they were able to better support the island’s hotels, restaurants, caterers, taxi operators, travel services and local businesses, as their spending on travel, transportation and entertainment rose 125 per cent from the previous year to return to pre-Covid levels.
Abir said they also supported on-island employment among service providers such as accounting firms, law firms, banks and advisers.
The association said Bermuda market companies played a leading role in sustaining the government revenues that fund public services through the taxes, fees and duties they pay.
Abir added: “With a majority of Abir members expected to be in scope of Bermuda’s proposed corporate income tax, due to take effect in 2025, the group’s value to the island may be about to grow further.”
Abir members also allocated more than $1.1 million to scholarships in 2022, in addition to the internships, training, mentorship and other career development opportunities provided.
Bermuda College Foundation executive director Kerry Judd said: “As one of the many non-profits that has benefited from the financial contributions of Abir members and Abir itself, the Bermuda College Foundation cannot overstate our appreciation.”
She said its ability to develop accessible, state-of-the-art facilities and programmes would not be possible without Abir’s ongoing support.
The nearly $6 million in charitable donations from Abir members in 2022 supported a wide range of organisations addressing social issues, education, the environment, sports and the arts.
Among the recipients, in addition to the Bermuda College Foundation, were Age Concern Bermuda, The Eliza DoLittle Society, The Reading Clinic, Elliot Primary School, Family Centre, Home, Pals, the Bermuda Cricket Board and Kaleidoscope Arts Foundation.
“Abir, and our member companies, are proud to call Bermuda home,” Abir president and CEO John Huff said.
“This survey offers some perspective on the scale of the economic substance that Abir member companies have in Bermuda and how our activities support local organisations across many sectors. During these economically challenging times, the $815 million annual injection directly into the local economy is particularly meaningful.”