Bermuda Insurers and Reinsurers Thrive, Surpassing $145 Billion in Premiums Despite Natural Disasters
Leading companies in the Association of Bermuda Insurers and Reinsurers (ABIR) have defied the odds, reporting a remarkable surge in premium written during 2022. Despite the challenges posed by natural disasters, ABIR members experienced a strong 13% year-over-year increase in premium written, reaching an impressive $145 billion.
The global underwriting report released by ABIR reveals that 24 out of the 30 member companies contributed to this outstanding performance. Gross written premium rose from $128 billion in 2021 to nearly $145 billion in 2022, while net premium written surged from $98.9 billion to $111.8 billion during the same period.
ABIR member companies operate from underwriting centers across the globe, including Bermuda, the United Kingdom, Europe, Asia, and North and South America. Despite the severe natural catastrophe season highlighted by Hurricane Ian, these companies collectively reported a net income of $5.1 billion, indicating prudent portfolio management and diversification into emerging specialty lines.
The surge in premium written can be attributed to the strategic expansion of ABIR members into growing specialty lines such as cyber, mortgage, political and terrorism risk, transactional liability, and financial lines coverage. This diversification amplifies the historic dominance of the Bermuda market in property coverage and positions Bermuda insurers and reinsurers as leaders in the global market.
John M. Huff, CEO of ABIR, emphasized the critical role played by Bermuda’s insurers and reinsurers in providing affordable and accessible insurance protection to consumers worldwide. Their proven track record of leveraging capital and capacity underscores their leadership position in the industry.
In response to evolving global trends characterized by geopolitical volatility, economic uncertainty, and social inflation, the Bermuda market has emerged as a center of excellence for sophisticated risk management. The demand for coverage against risks such as war, political instability, terrorism, inflation-triggered financial lines, and professional liability has prompted Bermuda re/insurers to offer comprehensive solutions.
Furthermore, Bermuda insurers are experiencing growth in specialty lines including mortgage, casualty, agriculture, aviation, marine, and renewable energy. These areas require deep underwriting expertise to safeguard economies amidst a rapidly changing world. Leveraging their world-class talent base, proprietary analytical tools, tailored customer solutions, and substantial capital and capacity, the Bermuda market is successfully adapting to meet expanding client needs.
Overall, the performance of Bermuda insurers and reinsurers showcases their resilience and ability to thrive in the face of adversity. Their commitment to disciplined portfolio management, diversification, and innovative solutions has propelled them to become the preferred choice for specialty and casualty coverage. With their extensive expertise and resources, Bermuda market players are poised to continue leading the global insurance industry.
In conclusion, Bermuda insurers and reinsurers have defied the challenges presented by natural disasters, demonstrating their strength and resilience. The significant increase in premium written is a testament to their disciplined approach, diversification into emerging specialty lines, and commitment to offering comprehensive solutions. As the market continues to adapt to evolving client needs, Bermuda insurers and reinsurers will undoubtedly maintain their position as global leaders in the insurance industry.
