Bermuda Commercial InsuranceReinsurance Markets

1
Bermuda Commercial Insurance/Reinsurance Markets

• What are the major strengths of Bermudas
  business environment?
• Why is Bermuda still the best place to conduct
  PC business?
• How has the Bermuda insurance and reinsurance
  industry performed in the recent Global Financial
  Crisis?
• With the reintroduction of the Neal Bill in the
  U.S., what, if any, impact will efforts to change
  tax laws in the U.S. have in Bermuda?

2
Bermuda Commercial Insurance/Reinsurance Markets

• In which lines of business do we expect growth in
  2010 and why?
• What lines of business are traditionally
  transacted in Bermuda (Captives, Excess Casualty
  and Catastrophe) and will these lines of business
  be adversely affected by potential changes to the
  U.S. tax code?
• The Bermuda business model appears to be shifting
  from the old mono-line underwriting model to a
  more multi-line underwriting model. What is
  driving this change and how are companies
  executing this strategic change?

3
30 Years of Bermuda Startups
1985-87
1993-94
2001-04
Class of 1993 Cat Ltd. Global Re IPC
Re Mid-Ocean Re Partner Re Renaissance Re Tempest
Re
Class of 2001 Arch Aspen AXIS AWAC Endurance Mont
pelier Platinum
Class of 2005 Ariel Flagstone Harbor
Point Ironshore Lancashire Cat
Bonds Side Cars
Class of 1985 ACE XL
Change in Annual Real Net Written Premium
Property Catastrophe
Excess Casualty
Multiline Diversified
Convergence
Note Shaded areas denote hard market periods.
Real NWP is adjusted for inflation. Source A.M.
Best, Insurance Information Institute.
4
Regulatory Developments

• What impact are BMA activities having on the
  Class 4 and Class 3B sectors and how is this
  affecting Bermuda's attractiveness? What has
  been the industry's response to the various
  initiatives?
• What about the regulation of captives? Has there
  been an uptick with respect to compliance
  requirements for the captive sector?
• What impact has the new Special Purpose Insurer
  SPI legislation had for the Bermuda market and
  what is the outlook going forward?
• Have there been any recent changes to the
  insurance company incorporation and licensing
  process?

5
New Insurance Incorporations (source BMA)
6
14 TIEAs Signed

• Standards for OECD compliance are to have at
  least 12 signed TIEAs with either OECD member
  countries or non-OECD member countries. Due to
  the signing with the Netherlands, the OECD
  upgraded Bermudas status from the Grey list to
  the White list on 8 June 2009. Bermuda has also
  recently signed with Ireland while negotiations
  have been underway or completed with Canada,
  France, Japan and Mexico.

7
14 TIEAs Signed, Contd.
OECD Member Countries Please note that
countries can opt to sign a TIEA with the
European Council as a whole or with each European
Union state individually (i.e. such as the path
Switzerland is taking in order to avoid risking
delay in the ECs need to obtain an EU-wide
mandate).