Bermuda re/insurers post GWP increase in Q1

Re/insurance companies in Bermuda have collectively seen substantial growth in the first quarter of the year, due to acquisitions made by a select few companies in the past 18 months, according to an S&P Global Ratings report.

The report said that growth would be flat if the impact of these deals is removed. It also warned that headwinds for the sector remain strong and pricing continues to decline in most lines.

The consolidated gross written premiums (GWP) of these re/insurers increased by 21 percent in the first quarter of 2016, while aggregated GWP increased to $16.12 billion compared with $13.38 billion in the same period in 2015.

But some of the headline deals last year have driven this growth.

Among these small companies are XL Group and Catlin Group, who reported increased GWP by 76 percent.

A deal between RenaissanceRe and Platinum Underwriters deal also led to a 34 percent increase while Endurance Specialty’s acquisition of Montpelier Re increased GWP by 24 percent.

The report suggested that some organic growth occurred in companies operating in lines of business such as accident and health insurance, UK motor reinsurance, and mortgage reinsurance.

But S&P said pricing and competition remained tough in most other lines such as agriculture, marine, energy, property, and property catastrophe.