Bermuda is striking a balance between rigorous regulation and a positive commercial environment that is proving attractive to life reinsurers.

That is the view of Suzanne Williams, the chief executive of Bermuda International Long-Term Insurers and Reinsurers, after the Bermuda International Life and Annuity Conference drew a full-to-capacity attendance last month.

The Biltir annual event drew 760 attendees from 15 countries, with half the delegates flying in from overseas.

One of the largest business conference attendances Bermuda has seen in recent years reflects the strong growth in the island’s life reinsurance sector, which had more than $1.5 trillion in assets under management, as of last year.

The fast growth has spurred greater regulatory scrutiny, both from the Bermuda Monetary Authority and from major economies whose pensions and annuities are being backed by Bermudian reinsurers, including the United States, Japan and Britain.

Ms Williams sees the BMA’s moves to bolster its supervision of the sector as a strength for the island, rather than a growth inhibitor.

“I would say that Bermuda’s special niche is balancing rigour with ensuring a commercial environment,” Ms Williams said in an interview.

The BMA has significantly strengthened its oversight of the island's rapidly growing life reinsurance sector in recent years.

Since 2023, it has introduced mandatory prior approval of block reinsurance transactions, tougher capital and reserving requirements, enhanced liquidity stress testing and stricter controls on investments involving affiliated companies.

The regulator has also intensified scrutiny of private credit and other illiquid investments, while pursuing reforms aimed at improving transparency around the assets and liabilities of Bermuda’s life reinsurers.

Ms Williams said many of the transactions and investments involved in life reinsurance were “very complex”.

“What’s important, in my view, is an acknowledgement that companies will likely understand their business more than the regulator and in advance of the regulator.”

She explained that, logically speaking, a company understands the transaction that it creates. Then the regulator reviews it and also has to understand. While this process is also normal in other jurisdictions, Ms Williams said the way it unfolds in Bermuda is unique.

“The BMA is very open to understanding something along the process and not waiting until the end of the process — and I think that benefits both sides,” said Ms Williams, herself a former deputy director of insurance supervision at the BMA.

“Companies understand how something will be looked at and potentially dealt with by the regulator. And the BMA also has the opportunity to understand the technical aspects of a transaction.

“Once you understand something, it makes it easier to determine the risks associated with it, and thus the appropriate supervision for that particular transaction.

“So the Bermuda market has recognised that the more information companies provide the BMA about what they’re doing, the better the outcomes are for everyone.”

With no shortage of demand from pension and annuities providers looking to offload risk from their balance sheets, amid surging demand for retirement products from ageing populations around the world, Ms Williams sees good prospects for further expansion.

“From what I have heard, we will likely continue to experience growth,” Ms Williams said. “I think that the pace at which the Bermuda market grows will largely be dependent on the quality of the companies looking to set up shop on the island.

“The BMA is being very protective of the jurisdiction and its reputation, and so ensuring that they only allow responsible companies and good actors to operate from the jurisdiction. I think that would likely be one of their top priorities when looking at new applications.”

The emergence of Bermuda as the leading life reinsurance hub was evident at the conference, when there was standing room only at many sessions at he Hamilton Princess & Beach Club.

Ms Williams said Biltir was “quite proud” of the attendance for its showpiece annual event, which drew executives, regulators, policymakers, asset managers and industry leaders.

“It was an increase from last year, when we had about 550 delegates, and I’m hoping we can attract even greater numbers to the island in future,” she said.

“It’s good, not only for insurance and reinsurance business, but also for the island’s economy more broadly. Anecdotally, people were saying they couldn’t get a restaurant reservation or a coffee without a long line.

“That’s positive for the jurisdiction because it means people were enjoying our hospitality.”

The conference brought together leading regulatory voices from Bermuda and the US, including Craig Swan, CEO of the BMA, and Scott White, president of the National Association of Insurance Commissioners.

Panels explored the forces shaping the global long-term re/insurance market, from risk transformation, structured assets, private credit, and AI to the US-Bermuda value chain.

Speakers examined geopolitical and demographic shifts affecting retirement and capital flows, and Bermuda’s expanding relationships across Asian markets.

Retired US Army general David Petraeus, a partner at KKR and former Central Intelligence Agency director, had been “amazing” as a keynote speaker and a big hit with delegates, Ms Williams added.

Mr Petraeus examined shifting global power dynamics and how “new big ideas” drive business growth, pointing to Bermuda’s ability to evolve alongside the needs of the re/insurance industry.

“We are creating an environment for keynote speakers that sit on the periphery of some of these issues and can add things that will be layered on top of what we’re doing day to day,” Ms Williams said.

“We have the technical regulatory element and also the market element. There’s something to interest everyone and that creates a really good balance.”

Looking back at the conference, Natasha Scotland Courcy, chairwoman of Biltir, and CEO and general counsel at Athene Life Re, said in a statement: “Millions of policyholders around the world are depending on us to deliver on promises that extend for decades, and ageing populations are only increasing the need for long-term financial security.

“The discussions at the conference highlighted the scale of that responsibility and the opportunity ahead, while reinforcing the important role Bermuda can play in delivering greater financial security for generations to come.”