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Bermuda Market Review: Feeling undervalued

17 February 2010

Bermuda has long been viewed as the so-called better mousetrap, the best and most efficient place for new insurance capital. That is now changing, but the island’s leaders say observers should not underestimate Bermuda’s importance.

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Everything you used to know about Bermuda is wrong. It is no longer the go-to place for capital. A new class of reinsurers will not appear on the island following the next big catastrophe event. The firms on the island are not about to embark on a frenzy of mergers.  That is what the island’s chief executive officers say, at least. But that does not mean the island is losing its appeal. Instead, one of Bermuda leaders’ biggest concerns at the moment is that they believe the market does not get the respect it deserves.  Bermuda’s insurers and reinsurers enter 2010 after a great year. The Bermuda firms tracked by reinsurance broker Guy Carpenter experienced strong recovery as net income improved to $7.28bn in the first nine months of 2009, from a $440m loss in the first nine months of 2008.  The Guy Carpenter Bermuda Composite’s underwriting figures also improved, with...


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Catastrophe bond issuance was $4.3bn in 2011. How much new issuance will there be in 2012?

Less than $3bn
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$3bn-$4bn
44%
$4bn-$5bn
22%
$5bn-$6bn
11%
$6bn-$7bn
22%
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