Reclassifications prompt Bermuda captive premium drop

HAMILTON, Bermuda—Bermuda-domiciled captive insurance companies wrote $21.4 billion in gross premiums in 2010, the most recent period for which premium data is available, down 34.6% from $32.7 billion in 2009, according to the Bermuda Monetary Authority.

The BMA on Tuesday attributed the drop in premiums to a combination of the authority's ongoing reclassification of companies to more accurately reflect their risk profiles and a decrease in premiums written by some particular captive companies.

The number of captives licensed in Bermuda increased to 862 in 2011 from 845 in 2010.

Overall, the BMA registered 54 new insurers in Bermuda in 2011, up from 36 in 2010. In addition to new captives the numbers include commercial insurers, special-purpose insurers and reinsurance companies.