Bermuda:Re
BermudaReinsurance . June 2006
editorial
Bermuda Reinsurance is published quarterly
Bermuda reinsurers fall into two camps. one school believes
by Newton Media Limited.
Newton Lodge
that the size of the Bermuda insurance and reinsurance
15-17 Newton Way
Woolsthorpe-by-Colsterworth
market—net annual premiums approaching $100 billion,
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Editor: Roger Crombie, FCA
assets north of $300 billion—guarantees its invincibility
Email: editorial@newtonmedia.co.uk
Sub-editor: Susan Gault against outside forces. the other regards the existence of the
Publishers: John Eddington
Nicholas Lipinski
Bermuda market as fragile, despite its size, because of the
Advertising: John Eddington
Telephone: +44 1476 861 737
threat it poses to the established order.
Email: john@newtonmedia.co.uk
Advertising: Nicholas Lipinski
Telephone: +44 2083 133 967 Roger Crombie, FCA - editor
Email: nlipinski@newtonmedia.co.uk
Production and design:
Strano and Pettigrew Design Associates
67 Mowat Avenue
Suite 239
Toronto, Ontario
M6K 3E3 Canada Both sides have valid arguments.
Telephone: +1 416 533 7171
Bermuda is now the dominant force in To an extent, of course, the debate is specious.
Fax: +1 416 535 7526
E-mail: info@stranoandpettigrew.com
reinsurance worldwide. It operates the largest With the Eastern Seaboard and Gulf Coast among
www.stranoandpettigrew.com
block of business at Lloyd’s, rivals the long-time the most highly insured areas in the world, the
Printed by Pensord, UK
presence of the Central Europeans, and has had US relies on Bermuda’s reinsurance power.
©Newton Media Limited 2006.
a hand in reducing the US reinsurance sector Bermuda will eventually have paid almost half
All rights reserved.
to a rump. Bermuda has the strongest possible the insured losses of Katrina, Rita and Wilma.
No part of this publication may be reproduced, momentum; almost every major new reinsurance Foreign insurers collateralise and pay taxes on
stored in a retrieval system, or transmitted in any
company formed or reorganised in the past 15 their US operations.
form or by any means, electrical, mechanical,
years chose to reside in Bermuda. From a political
Perhaps most importantly, the US and Bermuda
photocopying, recording or otherwise without the
angle, it is unlikely that anyone would want to
prior written permission of the publisher.
are more than friends. A little sabre-rattling may
disrupt world trade by damaging the Bermuda
The views expressed in Bermuda Reinsurance are
be in order for public consumption, but not even
not necessarily those shared by the publisher,
market. Under current market conditions, it is
Democrats would turn the world of commerce
Newton Media Limited. Wishing to reflect the almost impervious to competition. upside down and stab a friend in the back just to
true nature of Bermuda, the editor has included
On the other hand, some of the remaining
make short-term political hay.
articles from a number of sources, and the views
expressed are those of the individual contributors.
US companies have been bullying Congress for The only establishment risk the Bermuda
No responsibility or liability is accepted by
five years to “do something about Bermuda”. To market carries would be a demonstrated failure
Newton Media Limited for any loss to any person, its credit, a Republican House understands how to meet claims. Having survived the hurricane
legal or physical, as a result of any statement,
competition works and that it produces losers as seasons of the past two years, it would take a
fact or figure contained in Bermuda Reinsurance.
well as winners. The risk remains, however, of mighty catastrophe indeed to cause the Bermuda
This publication is not a substitute for advice
on a specific transaction. The publication of
a Democratic Congress looking to earn political market to be unable to meet its liabilities. Going
advertisements does not represent endorsement by
capital, without regard to the consequences, or, into the 2006 hurricane season, such a storm, or
the publisher. more ominously, of a last-minute rider attached series of storms, or for that matter an earthquake,
Bermuda Reinsurance - ISSN 1749-4508 to an unrelated Bill. is exactly what no one wants
BermudaReinsurance . June 2006 3
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