A new A.M. Best Co. research report – “Bermuda – 2007 Financial Review” – featured in BestWeek U.S./Canada, finds that “three years removed from unprecedented hurricane losses, the Bermudian insurance market is bouncing back with a fury.
“The market posted positive financial results in 2006 and 2007, while evolving into one of the world’s prominent markets,” The last two years “provide interesting comparisons between performance of established companies and newer ones,” the special report said. “Established carriers, for the most part, experienced declines in gross and net premiums written. Less evident are changes in exposure, which should be declining at the same rate.”
However, Best found that with few exceptions, “balance sheets are in the best shape in years. The Bermuda market produced excellent underwriting results for calendar years 2006 and 2007, boasting combined ratios of 83.6 and 82.9, respectively. Strong operating cash flow continued to fuel increases in invested assets and income.
“The Class of 2001 has proven to be a formidable competitor for the established players. The Class of 2005 started with a rush, but its early profits are challenged by the softening markets. The market’s execution of enterprise risk management, the report says, will be tested in the future.”
BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, call A.M. Best’s customer service department at (908) 439-2200, ext. 5742, or e-mail your request to email@example.com.
Source: A.M. Best – www.ambest.com
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