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Member, Beacon International Group, Ltd.
Premium volume, net income and capital levels improved for Bermuda-based reinsurers in 2012, according to data released on Monday by the Association of Bermuda Insurers and Reinsurers.
The report, based on a survey including 19 of the association’s 21 member companies, found that global gross written premium for the group in 2012 was $66.4 billion, compared with $65.8 billion in 2011. The group’s net income rose to $9.44 billion in 2012, compared with $1.49 billion in the previous year.
The group’s capital base also rose to $95.2 billion, up from $89.7 billion in 2011.
“The $9.4 billion in net income demonstrated a good recovery from the worst ever global loss year of 2011. Bradley Kading, president and executive director of ABIR, said in a statement. “But this number was still below net income reported by the membership in 2006, 2007, 2009 and 2010.”
Mr. Kading noted that the group continued to sustain losses from natural catastrophes.
“Bermuda’s (re)insurers have reported nearly $3 billion in estimated losses from Hurricane Sandy,” he said. “In the period 2001 through 2012, this brings the Bermuda (re)insurers estimated catastrophe loss payments to United States customers to $35 billion.”
Despite the losses, the Bermuda’s reinsurance sector has an abundance of capital and remains competitive, he said. “ABIR members grew their equity base by 6% year over year,” he said. “The $95 billion capital and surplus base is the largest ever reported in the seven years in which ABIR has been collecting global underwriting data.”
Catastrophe losses limited 22 Bermuda insurers and reinsurers to $1.49 billion in profit 2011, down from $11.37 billion the previous year, according to a report released Monday.