SUNDAY, JANUARY 22: Bermuda’s reinsurance industry is well-placed to weather a storm of claims from near-record global catastrophe losses last year, according to analysts Fitch.
A report from Fitch said the Bermuda market was “fundamentally resilient, with a strong, albeit diminished, capital position and a proven ability to adapt in meeting capacity needs.”
But Fitch warned that - after large 2011 losses associated with the Japanese earthquake and tsunami, spring storms in the US and Hurricane Irene – the pace of recovery in premium pricing is critical.
Fitch added that underwriting capacity in Bermuda remains strong, even though overall capital declined slightly in 2011 for the 17 Bermuda-domiciled insurers tracked by Fitch.
According to an article this weekend in the respected Insurance Journal, Fitch said that Bermuda’s competitive position will also be heavily influenced by increased international regulation.
Competition from other jurisdictions, tax status scrutiny and changing rules on collateral are also likely to impact the Bermuda-based industry.