ABIR members see 21% premium growth in 2021 global underwriting results

Member companies of the  Association of Bermuda Insurers and Reinsurers (ABIR) recorded a robust 21% year-over-year increase in net premium written in 2021, driven by strong market conditions and continued expansion in specialty and casualty portfolios, the association’s global underwriting report has revealed.

The report comprises data from 25 of 29 member re/insurers for the calendar year 2021. The group generated a net premium written of $98.6 billion, up from $81.6 billion in 2020.

The participating companies write insurance and reinsurance from underwriting centres in Bermuda, the UK, Europe, Asia, North and South America. The 25 re/insurers wrote $127.9 billion in global gross written premium on a capital and surplus base of $139.6 billion. They reported net income of $15.5 billion.

Net premiums written benefited from market growth and improving underwriting conditions with an expectation of additional progress in 2022, ABIR said. Deployment of some of the approximately $19 billion of risk capital introduced by Bermuda start-ups and scale-ups in 2020-2021 has also contributed to growth, it added.

One notable trend in the latest results, ABIR went on, was marked growth since 2020 in specialty and casualty portfolios, with more firms offering products like cybersecurity and financial lines coverage, building on the Bermuda market’s historic global strength in the property sphere.

“Bermuda’s leading insurers and reinsurers remain significant providers of protection and peace of mind for consumers around the world with robust growth since 2020,” said John Huff, chief executive officer of ABIR.

“Building on a distinguished three-decade track record of providing global climate risk and natural catastrophe protection through property reinsurance, Bermuda insurers and reinsurers are also becoming the specialty and casualty market of choice.”

ABIR said its members “continue to be at the forefront” of analysing complex risk and developing new products in expanding lines of coverage, including cyber, financial products and transactional liability.

Bermuda re/insurers are also continuing to see growth in mortgage, casualty, agriculture, aviation, marine and renewable energy lines.

“These specialty lines require deep underwriting expertise to protect economies in today’s fast-changing world,” Huff said. “Leveraging a world-class talent base, proprietary analytical tools, tailored customer solutions and significant capital and capacity, the Bermuda market is evolving in line with expanding client needs.”

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