"Bermuda Insurance report business monitor international" has been published Thursday (16 December) and then says that 2009 remembered as "an exceptionally good for Bermuda (re) insurers year", the losses incurred by the Chilean earthquake, storm in China and in dull markets put a damper on profits this year.
"One of the biggest problems facing the industry insurance Bermuda... is the controversial policy which would add to reinsurers taxation Island, U.S. corporate tax" says the report. "Bill would stop non-American insurance groups and subsidiaries, part risk transfer to a reinsurer affiliated to the coast to reduce taxes."
"The Association of Bermuda insurers and reinsurers (ABIR) is strongly opposed to the invoice, suggesting that it would be counterproductive to United States lift the burden on consumers and reduction of insurance coverage."
International business monitor said in practical terms, the global nature of most major Bermuda insurance companies is such that they would be able to mitigate the impact of an adverse change in the tax law.
"In the medium term a challenge could be international/global competition (re) insurance companies in countries such as the Ireland and Switzerland, said the report." Both can benefit from proximity to Europe, double taxation treaties (DTTs) with the United States and even compared to Bermuda standards, access to appropriate staff.
The report added to Bermuda continue to boast a combination of forces – the absence of the income tax of a regulatory regime for first class, proximity to North America and the development of a large enough community of persons with skills - to give a position who seem unassailable.
"Bermuda has 16 35 top world's reinsurers, according to AM Best rating agency and has the largest market the property catastrophe reinsurance providing 40 percent of the United States and of the European market, said Business Monitor." Bermuda has well over 1,000 insurers in captivity. (The actual number of captive is difficult to define because many of these Insurers are cell Companies which service several different customers simultaneously through rent-a-captive programs). »
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The full report of Bermuda insurance can be purchased here.
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