ABIR contributions to Bermuda economy reach new high

International insurers and reinsurers based in Bermuda are expected to enhance their contribution to the local economy, as highlighted by industry leaders and the Association of Bermuda Insurers and Reinsurers (ABIR).

A survey conducted by ABIR underscores the substantial contribution its members already make to the Bermudian community. Last year, these companies contributed $815 million to the local economy, marking a 13% increase from 2021. This total includes salaries and benefits for Bermuda-based employees, spending on local travel and entertainment, and nearly $6 million in donations to Bermudian charities.

In a report from The Royal Gazette, the association’s recent statement also indicates that many of its members will be impacted by the new minimum corporate tax regime the Bermudian Government plans to implement.

Over the past 15 years, ABIR members have collectively contributed a significant $12.84 billion directly to the economy. The association represents the largest employment segment in the island’s insurance and reinsurance industry.

In 2022, ABIR member companies employed 1,585 people in Bermuda, an increase of 158 from the previous year. Of these employees, 1,103 were Bermudians, spouses of Bermudians, or permanent resident certificate holders. The local workforce component accounted for 70% of the total, attributed to the companies’ investment in career training, development, and recruitment.

Pina Albo, the CEO of Hamilton and chair of ABIR, highlighted the members’ commitment to Bermuda, emphasizing their contribution to local businesses, especially in the hospitality and service sectors. Their spending in these areas rose by 125% from the previous year, returning to pre-COVID levels.

The association also noted that its members also bolster on-island employment among service providers like accounting firms, law firms, banks, and advisers. The companies play a key role in supporting government revenues through taxes, fees, and duties.

With most ABIR members expected to fall within the scope of Bermuda’s proposed corporate income tax, set to take effect in 2025, their economic value to the island is poised to grow.

Elsewhere in the market, Hamilton Insurance Group, following its recent debut on the New York Stock Exchange, has announced a net income of $43.6 million for the third quarter in its inaugural earnings report as a publicly traded company.

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