Standard & Poor’s Ratings Services has published a commentary, titled, “Bermuda Class Of 2001: Five Years On,” which examines the present state of recent Bermuda reinsurance start-ups.
S&P’s report notes that the new Bermuda companies – the majority were formed after the Sept .11 attacks – have faced a number of challenging occurrences. There have been “673 large loss events causing more than $163 billion in insured losses, including the largest insured loss in history; corporate accounting scandals; hard markets in both casualty and property lines; and exponential premium growth” over the last five plus years.
“They new class of Bermuda (re)insurers has faced events that would have challenged most insurers over a 10- to 15-year period,” S&P observed. “The Class of 2001 has graduated with distinction,” stated S&P credit analyst Dennis Sugrue. “Five of them at year-end 2006 ranked in the top-10 of Bermuda companies in terms of capital, and four in terms of premiums earned.”
S&P’s report, however suggests that “new tests await, as increasingly difficult market conditions challenge the ongoing transition of these entities from start-ups to mature companies.”
This article is part of S&P’s “Global Reinsurance Highlights 2007” article series.
Subscribers to RatingsDirect can search for the contents of the “Global Reinsurance Highlights 2007” article series by typing “GRH2007” in the Keyword/Identifier box on the left-hand navigation bar and selecting “Research” in the Search Type box at: www.ratingsdirect.com
If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to: research_request@standardandpoors.com.
Ratings information can also be found on S&P’s public Web site at: www.standardandpoors.com; select Ratings in the left navigation bar, then Credit Ratings Search. Alternatively, call one of the following Standard & Poor’s numbers: Client Support Europe (44) 20-7176-7176; London Press Office Hotline (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5914; or Moscow (7) 495-783-4017
Topics Reinsurance
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