A new report by the Bermuda International Long Term Insurers and Reinsurers (BILTIR) has revealed significant stability and growth within Bermuda's long-term insurance market. Specifically, 92% of BILTIR members' rated assets under management are investment-grade, while assets held by these companies exceed their liabilities by $231 billion.
BILTIR based its findings on a study involving 55 life and annuity (re)insurers who are members of the association. One significant finding is that BILTIR members have made total benefit payments of $137 billion over the past five years, highlighting efforts to address the pension protection gap.
Assets held by reporting companies exceed their liabilities by $231 billion, indicating a high level of asset diversification used for reinsurance, direct writing, and growth financing.
The analysis shows that 92% of BILTIR members' rated assets under management are investment-grade, with 95% of their bonds, debentures, and structured assets also being investment-grade. In addition, 77% of these assets benefit from secured trusts, funds withheld, or MODCO arrangements, reflecting stable investment capital that fuels industry innovation.
“As evidenced by this data, Bermuda’s insurers and reinsurers hold an important role in protecting policyholders. Strong, evolving regulation and stable capital investments create an environment for excellence within the industry,” BILTIR CEO Suzanne Williams-Charles said.
“Addressing the pension protection gap is a global issue, and Bermuda is taking center stage as the location to support the changing industry. This jurisdiction stands as a best practice model for others.”
