In Q3 2015, we saw continuation of the strong industry trends that the Bermuda insurance market has been driving in recent years. The ILS market remains robust, with US$3.725 billion in new cat bond issuances in the first half of the year alone – a record volume. Notably, along with the “traditional” markets favouring the use of cat bond and other ILS structures for risk transfer, the third quarter saw the issuance of the first Chinese-sponsored cat bond, Panda Re, an indication of the everbroadening acceptance of these innovative structures – and yet another endorsement of Bermuda as the jurisdiction of choice. Further, this past quarter saw some very significant new commercial Class 4 insurers raising capital and starting to write business, with ABR Re raising US$800 million, and Fidelis Insurance raising a staggering US$1.50 billion – making it the largest new Bermuda start-up in over a decade. It speaks volumes that even in the conservative post-financial crisis environment, these commercial ventures are finding significant investor support – and are choosing Bermuda as the optimum jurisdiction in which to do business. With several other very large commercial ventures in the pipeline, and the ILS market showing no sign of slowing down, we have every expectation of these trends continuing and, going into the final quarter of the year, look forward to maintaining our role as a lead advisor.
This update provides an overview of the Bermuda Insurance sector and features a recap of the latest trends, registrations, news and event highlights.
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