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Bermuda registers 16 captive insurers in 2014

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The Bermuda Monetary Authority registered 89 new insurance entities, including 16 new captive insurers, in 2014.

Registration growth was “moderate” in 2014, with the authority also granting approval to 11 new commercial insurers and 28 special purpose vehicles in 2014, the BMA said Monday in a statement.

“The significant level of activity experienced in the SPI licensing class was not surprising in light of the increasing role of this segment in the global reinsurance sector,” Shelby Weldon, the BMA's director licensing and authorizations, said in the statement.

In all, 65 new insurers and 24 new intermediaries were registered. Among insurers, there were six class one insurers, seven class two newcomers, and eight class 3A entities registered. Other classes showed smaller additions.

Of the 24 new intermediaries registered, 12 were agents, seven managers and five brokers.

Growth was led by the long-term life sector, which saw four new Class E insurers, five Class C insurers and one Class A insurer in 2014 compared with three Class C insurers, two Class B insurers and one Class A insurer in 2013, the authority said.

Class E license holders are the largest of Bermuda's long-term insurers, each required to have total assets of more than $500 million. The new Class E insurers started business with over $2 billion of assets, according to the statement.

“An influencing factor in the growth of our long-term sector was the National Association of Insurance Commissioners' granting conditional qualified jurisdiction status to Bermuda in December 2013,” Mr. Weldon said.

Ownership of the new insurers was led by the United States, with Bermuda and Europe following in second and third place. There also were two new insurers from Latin America and two captives from Canada.

The authority also granted approval to 22 more captives and commercial insurers expected to formally register during the first quarter of 2015.