Bermuda market growth slows

Not unexpectedly, growth of the Bermuda market slowed in the first half of 2004, with insurance company incorporations dropping compared to the first six months of 2003, according to data from the Bermuda Monetary Authority (BMA) Insurance Division published by The Royal Gazette.The number of incorporations dropped to 34 in the first half of 2004 from 43 a year ago, although 2003 also represented a decline in growth compared to the boom years of 2001-2002. In each of 2001 and 2002, about 100 insurers set up shop in Bermuda.Comparing June 2004 to June 2003, incorporations stayed on par at seven, with the majority being “class one” insurers, i.e. single-parent captives with capital requirements below US$120,000. There were no “class-four” or major insurer incorporations in the first half of this year, while the early part of 2003 saw just once such insurer set up shop, Quanta Reinsurance.