Once more, Bermuda has shown its dominant position as a house to structures used for catastrophe bond and insurance-linked securities (ILS) arrangements in 2024, with firms arrange for this purpose dominating registrations of latest insurance and reinsurance entities in Bermuda last yr.
The variety of catastrophe bond and insurance-linked security (ILS) related registrations was down year-on-year, because the number of latest cat bond vehicles dropped.
But, this is said to the very fact cat bond issuance vehicles might be used multiple times over a few years and last yr saw a bumper crop of latest cat bond vehicles, fairly than any registrations being seen anywhere else around the globe in other domiciles.
2024 resulted in 19 registrations of latest restricted special purpose insurers (SPI’s) in Bermuda, that are within the foremost vehicles for issuing catastrophe bonds, in response to Bermuda Monetary Authority (BMA) data.
This was down, as said, on the 29 registered in 2023, but with these SPI structures reusable, it does are likely to fluctuate and still we saw incremental latest sponsors entering the catastrophe bond market in 2024 and using Bermuda as a domicile for his or her issuers.
There have been 2 latest unrestricted SPI’s registered in Bermuda in 2024 as well, 1 lower than 2023, that are structures typically used for risk transformation and fronting of insurance-linked securities (ILS) capital, in addition to other collateralised reinsurance transactions, having a broader remit than simply cat bonds.
One structure that activity increased for was the collateralised insurer class company in Bermuda, with 5 of those registered in 2024, up on 2023’s 2.
As well as, there have been 7 other insurance and reinsurance related company registrations in Bermuda across other classes that we will discover as linked to ILS strategies, or for third-party capitalised life reinsurance sidecar structures in 2024.
Overall cat bond ILS and third-party capital linked company registrations in Bermuda subsequently reached 28 for full-year 2024, which while down on 2023’s record of 37, stays near long-term averages.
Over the course of full-year 2024, the Bermuda Monetary Authority (BMA) reported that 63 re/insurers were registered, in addition to 12 intermediaries, for total insurance and reinsurance related company listings of 75 for the yr.
Which compares to 62 re/insurance firms and 5 intermediaries registered in 2023, 80 re/insurers and 4 intermediaries registered in Bermuda in 2022, 64 re/insurers and 14 intermediaries registered in 2021, and 67 re/insurers and 5 intermediaries in 2020.
With 28 of the registrations in 2024 being related to insurance-linked securities (ILS), across catastrophe bonds, transformers, collateralized reinsurers, sidecars and one manager, it has again been a really strong yr that served to further drive home the dominant role in global ILS that Bermuda has created for itself.
As we also reported recently, the Bermuda Stock Exchange (BSX) maintained its position because the leading exchange on the earth for the listing of insurance-linked securities (ILS) instruments in 2024, with roughly 92% of outstanding catastrophe bond issuance finding a house there as of the top of the yr.
You possibly can examine and examine details of most of the Bermuda registered SPI’s and other ILS structures in our catastrophe bond Deal Directory, our mortgage ILS directory and our reinsurance sidecar listings.