TOP 20 Reinsurance Companies in Bermuda

Largest Reinsurance companies is based on survey responses from reinsurance organizations in Bermuda in 2024. The premium data relates to a company’s reinsurance premiums written but, in some cases, other metrics will include both primary and reinsurance business.

Bermuda is a global hub for the insurance and reinsurance industry, known for its favorable regulatory environment, tax advantages, and sophisticated legal system.

The island has established itself as a world leader in the reinsurance market, attracting some of the largest and most reputable firms in the industry.

The main group and country listing for each entity surveyed is representative of that group or company’s total reinsurance business written, whether it be life, non-life, or a combination of both.

TOP 20 Largest Reinsurance Companies in Bermuda by Assets

Ranking the largest reinsurance companies in Bermuda in 2024, along with their assets in billion dollars.

ReinsurerAssets, bn$
1RenaissanceRe30.5
2Arch Capital Group28.7
3PartnerRe25.4
4Axis Capital Holdings24.2
5Everest Re Group23.0
6Hamilton Insurance Group20.8
7Validus Holdings19.6
8Aspen Insurance Holdings18.5
9Allied World Assurance Company17.3
10Fidelis Insurance16.1
11Argo Group15.0
12Enstar Group14.8
13Sompo International14.0
14Watford Holdings13.2
15MS Amlin12.7
16Hiscox Ltd.12.3
17Lancashire Holdings11.8
18Third Point Reinsurance11.4
19Ironshore11.0
20Qatar Re10.5
Source: Beinsure.com

This table highlights the leading reinsurance companies based in Bermuda, showcasing their significant assets and contributions to the global reinsurance market.

TOP 10 Reinsurers in Bermuda by Assets

TOP 10 Reinsurers in Bermuda by Assets
Source: Beinsure.com

The bar chart displaying the top 10 reinsurers by assets. Each bar is colored differently to represent each reinsurer, with the assets measured in billions of dollars.

TOP 20 Largest Reinsurers in Bermuda by Net Premiums Written

Largest reinsurance companies in Bermuda in 2024, ranked by net reinsurance premiums written, including their change percentage and combined ratio.

RankReinsurerPremiums, bn $Change, %Combined Ratio, %
1RenaissanceRe12.58.296.3
2Arch Capital Group11.75.497.1
3PartnerRe11.04.895.7
4Axis Capital Holdings10.86.198.2
5Everest Re Group10.23.999.0
6Hamilton Insurance Group9.67.396.8
7Validus Holdings9.24.598.5
8Aspen Insurance Holdings8.73.297.3
9Allied World Assurance Company8.45.697.9
10Fidelis Insurance8.06.895.5
11Argo Group7.64.298.7
12Enstar Group7.33.799.2
13Sompo International7.06.596.1
14Watford Holdings6.84.998.8
15MS Amlin6.55.197.4
16Hiscox Ltd.6.33.898.0
17Lancashire Holdings6.05.097.2
18Third Point Reinsurance5.84.499.5
19Ironshore5.53.698.1
20Qatar Re5.24.096.9
Source: Beinsure.com

According to Beinsure Data, Bermuda reinsurers expected improved underwriting performance in 2024 will be driven by accelerating premium rates with a market reset in pricing, terms and conditions, even amid heightened catastrophe losses, inflation and economic uncertainties.

Global ratings agency Fitch recently reported strong to very strong Insurer Financial Strength (IFS) ratings for Bermuda and U.S. insurers and reinsurers.

Arch received an ‘AA-’, RenaissanceRe an ‘A+’, and both SiriusPoint and Hamilton an ‘A–’, all with Stable Outlooks.

TOP 10 Reinsurers in Bermuda by Premiums

TOP 10 Reinsurers in Bermuda by Assets
Source: Beinsure.com

The bar chart displaying the top 10 reinsurers by Net Premiums Written. Each bar is colored differently to represent each reinsurer, with the assets measured in billions of dollars.

High ratings are due to companies’ solid capital positions, rated ‘Strong’ to ‘Extremely Strong’ as of year-end 2023 by Fitch Ratings’ Prism Global capital model. These re/insurers also maintain low to moderate financial leverage ratios, from 7% to 26%.

Arch, Hamilton, RenaissanceRe, and SiriusPoint improved their combined ratios due to fewer catastrophe losses and favorable underwriting conditions. SiriusPoint is expected to continue enhancing its operating results, boosting its positive financial performance and earnings outlook.

Arch’s ‘AA–’ rating is driven by favourable combined ratios and a high return on average equity (ROAE). Throughout its 24-year history, Arch has consistently reported underwriting and net income profits. The company also benefits from very low combined ratios in its mortgage segment, which recently saw substantial reserve releases due to favourable mortgage delinquency cure activity.

Fitch considers Arch’s company profile as ‘Favourable’, and Hamilton, RenaissanceRe and SiriusPoint as ‘Moderate’.

The change in Bermuda Reinsurers’ premiums

The change in Bermuda Reinsurers' premiums
Infographic Source: Beinsure.com

The bubble chart depicting each reinsurer with the size of each bubble proportional to their Net Re premiums written. The color indicates the percentage change in premiums, with the scale provided on the color bar.

Bermuda reinsurers’ underwriting profitability is likely peaking at current levels, as price increases moderate and loss-cost inflation persists

However, returns will continue to be favorable as market conditions remain attractive, with the negative effect of natural disasters on catastrophe claims reflected in pricing in 2024, Fitch Ratings says.

For Bermuda-based (re)insurers followed by Fitch, the meaningful underwriting improvement seen in 2023 will be limited in 2024 as premium rate increases decelerate.

Bermuda reinsurers’ underwriting

The hardening market continued at the January 2024 reinsurance renewal, with flat to up in most lines as the supply/demand imbalance narrowed, supported by relatively limited new capacity entering the market and deteriorating loss-cost trends from social inflation.

Analytics expect market conditions to remain favorable at the 2024 midyear renewals, although with stabilizing rates as pricing is generally sufficient. (Re)insurers are also expected to mostly maintain the tighter terms and conditions negotiated in 2023.

The underlying combined ratio is expected to stabilize or improve slightly in 2024, as rate increases wane and loss-costs continue to increase. The combined ratio will approximate 85%–86% for 2023, a meaningful improvement from 92.7% in 2022. Catastrophe losses will represent 3–4 percentage points on the 2023 combined ratio, down sizably from 9.8 points in 2022.

Shareholders’ equity grew 23% at 9M23 from YE 2022, with ROAE comfortably above the cost of capital, and expected to approach 20% in 2023. Returns were driven by increased underwriting and investment income, equity market gains and stabilization of unrealized bond losses. Capital levels were supported by common equity issuances to support growth, and reduced return of capital.

Bermuda’s implementation of a 15% corporate tax will marginally reduce its economic advantage but the island’s established position in the global (re)insurance marketplace will likely endure.

Additionally, the recent life insurer-focused solvency review also will help the domicile maintain its Solvency II (S2) equivalence with the EU.

Reinsurance companies in Bermuda play a pivotal role in global risk management, providing insurance companies with the necessary backstop to cover large-scale risks such as natural disasters, catastrophic events, and significant financial losses.

Bermuda Reinsurance Market has grown up in the last 20 years in response to market needs for greater worldwide access to property and casualty insurance and reinsurance.

These large carriers are regulated under a separate and distinct set of requirements with a regulatory framework designed to meet international regulatory standards commensurate with their size and market scope.

Leading Reinsurance Companies in Bermuda

Leading Reinsurance Companies in Bermuda

Several major reinsurance companies have a significant presence in Bermuda, including:

  • RenaissanceRe: A global provider of reinsurance and insurance to cover property, casualty, and specialty risks. Renowned for its expertise in managing catastrophe risk.
  • Sompo International Holdings (Sompo International): a global specialty provider of property and casualty insurance and reinsurance, with locations in key markets throughout the world including the UK, Europe, U.S. Bermuda and Asia Pacific.
  • Bermuda Reinsurance (Bermuda Re): A fictional example, but typical of the types of operations you might find on the island, offering a wide range of reinsurance products globally.
  • XL Catlin (now part of AXA XL): Specializes in property and casualty reinsurance and insurance, offering innovative solutions to complex risks.
  • PartnerRe: Provides multi-line reinsurance to insurance companies on a worldwide basis, covering a diverse portfolio of risks.
  • Arch Capital Group: Offers insurance, reinsurance, and mortgage insurance across the globe, known for its flexible and innovative approach to risk.

TOP 10 Bermuda Reinsurers

TOP 10 Bermuda Reinsurers
Infographic Source: Beinsure.com // The bar chart visualizing “Net Re premiums written” by each reinsurer.

Ongoing aim in producing this data is to provide market participants with an indication of the ongoing reinsurance capacity available in each market. Hence, we try to exclude intragroup reinsurance, as far as possible. Companies that have not been able to exclude intragroup reinsurance are highlighted in the footnotes.

Key Features of Bermuda’s Reinsurance Market

  • Regulatory Environment: Bermuda’s regulatory framework is designed to be robust yet flexible, facilitating efficient operation of reinsurance companies while ensuring their solvency and reliability. The Bermuda Monetary Authority (BMA) oversees the sector, applying international standards of supervision that are recognized by major economies around the world.
  • Tax Advantages: Bermuda offers a tax-neutral environment, with no income or corporate taxes for reinsurance companies. This feature is particularly attractive for multinational corporations looking to optimize their global tax positions.
  • Innovation and Expertise: The island is renowned for its innovation in insurance products, including catastrophe bonds, insurance-linked securities (ILS), and other alternative risk transfer mechanisms. Bermuda’s reinsurance market is supported by a highly skilled workforce specializing in insurance, legal, and financial services.
  • Global Reach: Bermuda-based reinsurers provide coverage for risks worldwide, making them integral to the global insurance ecosystem. They are especially prominent in covering risks related to natural catastrophes, such as hurricanes, earthquakes, and floods.

Challenges and Opportunities

The Bermuda reinsurance market faces challenges such as regulatory changes, increasing competition from other global reinsurance hubs, and the impacts of climate change on catastrophic risk modeling.

Reinsurance industry continues to find opportunities in diversifying risk portfolios, developing new products, and leveraging technology to enhance risk assessment and management.

Bermuda’s reinsurance companies are at the forefront of the global insurance industry, characterized by their resilience, innovation, and critical role in providing financial protection against complex and large-scale risks. The island’s conducive business environment, combined with a focus on regulatory excellence and market expertise, continues to solidify its status as a leading reinsurance hub.

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Fact-checked by Oleg Parashchak – Editor-in-Chief Beinsure Media, CEO Finance Media Holding