November 16, 2006
| Contact: | Anne Steinberg or James Briggs Kitchen Public Relations, LLC 212-687-8999 anne@kitchenpr.com or jbriggs@kitchenpr.com |
Conning Research: Bermuda Insurance Market Accelerates
$10 billion net income predicted for 2006
Hartford, CONN., November 16, 2006 - Bermuda has become the place where the capital markets and the market for insurance and reinsurance talent most closely intersect, according to a new study by Conning Research and Consulting, Inc.
"In the past 20 years, Bermuda has grown from a small haven for captives to a thriving center of insurance, and especially reinsurance," said Stephan Christiansen, director of research at Conning Research & Consulting, Inc. "By 2004, Bermuda accounted for nearly 12% of the unaffiliated reinsurance ceded from the U.S. market, worth $8 billion, up from just over 9%, or $7.1 billion in 2003."
The Conning Research study, "Bermuda: The New Capital of Insurance?" reviews this growth, identifies the key characteristics of the Bermuda model, and analyzes the growth opportunities for Bermuda insurers and reinsurers as well as the threats to Bermuda's prominence.
Bermuda's growth has accelerated, with a significant portion of the nearly $25 billion in new capital raised for the insurance industry in the past year going to Bermuda. Swift and efficient allocation of capital is at the core of the Bermuda insurance model, and it became even more efficient with the Class of 2005 and the increasing influence of hedge funds.
"We expect record earnings for Bermuda in 2006-as much as $10 billion or more in net income, thanks to a relatively benign hurricane season," said Christiansen. "This will help propel the Bermuda model continue to innovate in risk transfer efficiency with increased usage of capital markets mechanisms such as catastrophe bonds, sidecar reinsurers, and industry loss warrants."
"Bermuda: The New Capital of Insurance?" is available for purchase from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company's web site at www.conningresearch.com
About Conning Research & Consulting, Inc.
Conning provides insurance industry analysis to insurers and industry stakeholders. The Conning name has represented excellence in independent insurance industry research for 50 years. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth insights and analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.
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