Standard & Poor’s Ratings Services has published a commentary, titled, “Bermuda Class Of 2001: Five Years On,” which examines the present state of recent Bermuda reinsurance start-ups.
S&P’s report notes that the new Bermuda companies – the majority were formed after the Sept .11 attacks – have faced a number of challenging occurrences. There have been “673 large loss events causing more than $163 billion in insured losses, including the largest insured loss in history; corporate accounting scandals; hard markets in both casualty and property lines; and exponential premium growth” over the last five plus years.
“They new class of Bermuda (re)insurers has faced events that would have challenged most insurers over a 10- to 15-year period,” S&P observed. “The Class of 2001 has graduated with distinction,” stated S&P credit analyst Dennis Sugrue. “Five of them at year-end 2006 ranked in the top-10 of Bermuda companies in terms of capital, and four in terms of premiums earned.”
S&P’s report, however suggests that “new tests await, as increasingly difficult market conditions challenge the ongoing transition of these entities from start-ups to mature companies.”
This article is part of S&P’s “Global Reinsurance Highlights 2007” article series.
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