Bermuda market sees 17 new members in first quarter

The Bermuda insurance market grew by 17 new members in the first quarter of 2004, according to data from the Bermuda Monetary Authority’s Insurance Division. This is on par with first quarter 2003, although well off the “boom year” pace set in 2002.Of the 17 new licensees, 10 were captives, and in total the island boasts 1,600 insurance ventures. In each of 2001 and 2002, about 100 insurers set up shop in Bermuda.”At least US$12 billion in new capital is said to have been added to the already substantial Bermudian insurance sector during 2002, more than replacing the US$5 billion lost in the immediate aftermath of 9/11,” notes the Captive Insurance Companies Association (CICA). “The increase in available insurance capital has been particularly impressive when judged against bombed-out equity markets which at the time had almost dried up as a source of capital.”The CICA notes that much of the new capital has come from international carriers such as ACE, XL, Everest Re and Partner Re. Another force from Bermuda are “segregated account companies” or “protected cell companies”, with about 83 domiciled in Bermuda.