They had an $886.8M impact on the Bermuda economy in 2013.
Who are they? The members of the Association of Bermuda Insurers and Reinsurers (ABIR), which employed 1,516 people last year.
The $886.8m impact was $70m more than 2012.
Mike McGavrick, chair of the ABIR board and CEO of the XL Group, said in a release: “ABIR’s members represent the largest business segment in Bermuda, directly and indirectly driving economic activity, jobs, tourism and government revenues. The Government’s action to ease business travel restrictions, lengthen work permits and foster long term residence opportunities will bear fruit over time in employee location decisions. For every employee we bring to Bermuda, more jobs for Bermudians are created.
“The trend towards consolidation and the soft market conditions, however, will continue to affect our local employment.”
Sixty-five per cent of ABIR’s employees are Bermudians, spouses of Bermudians and PRC holders.
Brad Kading, ABIR president, said: “Bermuda is the centre of innovation in property catastrophe underwriting and the location of key talent in this business segment has allowed Bermuda to attract significant amounts of capital from pension funds to further grow Bermuda’s footprint in the alternative capital market.
“The Bermuda Monetary Authority’s accomplishments in meeting international regulatory standards and the leadership of the Minister of Finance in meeting the necessary highlevels of transparency, cooperation, and tax law compliance are twin foundations necessary for this business to thrive here. We applaud their actions.”
Mr Kading added the total economic contribution is a sum of: travel and entertainment expenses, our payments for business services, our charitable contributions, our real estate costs including housing reimbursement, plus payroll.
ABIR represents 21 international insurance groups all of which have essential underwriting operations in Bermuda. Nineteen ABIR members participated in the survey.
ABIR Travel and Entertainment Expenses in Bermuda
ABIR members estimated they spent $28.8 million in Bermuda on hotels, airfare, restaurants, taxis and catering in 2013, up nearly $1 million over 2012 expenditures.
ABIR Business Services Expenses in Bermuda
ABIR members estimated in 2013 they spent $66.9 million in Bermuda on legal, accounting, actuarial, temporary services and other consulting services, in 2012 they spent $75.6 million.
ABIR Member Charitable Giving in Bermuda
ABIR members estimated they contributed nearly $13 million in 2013 to Bermuda based charities; up from $10 million in 2012. Further, ABIR members have pledged or contributed a cumulative total of $7.9 million towards the Bermuda Hospital project, during the last three years.
ABIR Member Construction, Real Estate and Housing Costs
ABIR members estimated they spent in 2013 more than $107 million on construction, real estate, and housing costs in Bermuda; roughly $200,000 more than in 2012. Construction spending has had great variability over theyears.