Four new insurers set up shop

WEDNESDAY, DECEMBER 14: Four new reinsurance companies opened for business in November in a BMA report issued on Monday.

The Bermuda Monetary Authority reported that Agent Alliance Reinsurance Company, Ltd. was formed as a Class 2 insurer on November.  Three of the four new firms were Special Purpose Insurers: Golden State Re Ltd., Compass Re Ltd. and Tramline Re Ltd.

It brings the number of new insurers for the year to 41 with six other companies being set up as brokers or managers.

So far this year, 18 of the 41 insurers who have set up shop in Bermuda have been SPIs.

The Bermuda Sun reported last week that Chartis had entered into a reinsurance transaction with Compass Re, which will provide $575 million of protection to Chartis against US hurricanes and earthquakes. To fund its obligations to Chartis, Compass Re issued a catastrophe bond in three tranches – $75 million of Class 1 notes, $250 million of Class 2 notes and $250 million of Class 3 notes. The transaction closed on December 1, 2011.