The Association of Bermuda Insurers and Reinsurers (ABIR) reported a record contribution of over US$1 billion to Bermuda’s economy in 2023, marking the highest annual economic impact in the organization’s 31-year history.
This milestone was revealed in ABIR’s 19th annual Economic Substance Survey, which recorded US$1,016,904,197 in total contributions from its member companies. The survey also had the largest participation to date, with responses from 30 members.
ABIR companies have contributed US$15.35 billion to the island’s economy since 2006, primarily through spending on employment, business services, travel, construction, real estate, and charitable donations. In 2023, the annual total surpassed US$1 billion for the first time, reflecting significant spending across various local sectors.
The survey highlighted that member companies employed 2,140 full-time workers in Bermuda, including 474 in underwriting roles. Of this workforce, 1,441 employees were Bermudians, spouses of Bermudians, or permanent resident certificate holders, representing the highest number of Bermudians employed in a decade.
ABIR reports that Bermudians now account for approximately 70% of its members’ workforce, a trend consistent in recent years.
ABIR members remain the island’s largest private-sector employers, with contributions to government revenues through payroll taxes, fees, and duties that support public services. The group is also expected to become significant contributors to the Bermuda Corporate Income Tax, a 15% levy on the net income of multinational companies with revenues exceeding €750 million. This tax is set to take effect in 2025.
“ABIR members are proud of the substantial and sustained contribution made to the Bermuda economy over more than 30 years,” said ABIR chair and Hamilton CEO Pina Albo (pictured above, left)
Albo noted that the organization’s survey has tracked over US$15 billion in direct on-island spending since 2006, with a broader multiplier effect benefiting the local economy.
The survey detailed various contributions from ABIR members in 2023, including US$115.9 million spent on business services such as legal, accounting, actuarial, and IT consulting, US$87.7 million on construction, real estate, housing, and office space, US$20.3 million on travel and entertainment, and US$7.4 million in charitable donations.
Additionally, business travelers connected to ABIR companies accounted for 16% of Bermuda’s air arrivals in the first three quarters of 2024, supporting critical air links with major cities like New York and London.
ABIR members also invested in educational initiatives, providing US$1.17 million in scholarships and offering 108 paid internships in 2023, the highest number to date. The association continues to support foundational education through a 14-week Special Topics in Insurance course in partnership with Bermuda College and St. John’s University.
The program is set to return for its fifth year in January 2025.
John Huff (pictured above, right), ABIR’s CEO, highlighted the challenges posed by evolving global tax policies and ABIR’s role in tackling these issues.
“With many ABIR members falling within scope of the Bermuda Corporate Income Tax, we are mindful of how the sea change in the international tax system is rapidly redefining the parameters of competition between jurisdictions,” Huff said. “ABIR stands ready to work with the Bermuda Government to help ensure that Bermuda’s business ecosystem and cost structure remains attractive to international business, as we enter this new era of heightened global competition.”
What are your thoughts on this story? Please feel free to share your comments below.
