Bermuda’s international property and casualty (P&C) reinsurance industry’s net income increased 22.5% to $30.9 billion in 2024, up from $25.2 billion in 2023, according to the Bermuda Monetary Authority (BMA).
Although the industry’s combined ratio maintained improvement compared to the 2020-2022 period, the combined ratio increased by 3.5 percentage points year-on-year, from 76.1% to 79.6%.
The BMA reported that net premiums written increased 5.4% in 2024 from $68.9 billion to $72.6 billion, while net premiums earned increased 5.6% from $66.9 billion to $70.7 billion.
Total claims reached $39.4 billion, up 10.8% from $35.5 billion, and total assets increased 7.2% to $338 billion from $315.2 billion.
During the year, liquidity conditions declined, with the ratio of BBB-AAA-rated assets relative to claims falling to 375.6% from 412.4% in 2023.
The BMA said: “Despite challenges, market conditions such as pricing, tightening terms and conditions and cap and aggregation management have seen investment returns remain stable in 2024.
“In Bermuda, which dominates the reinsurance market, (re)insurer profitability improved in 2024. This was mainly due to continued improvements in the investment and underwriting environment, despite global natural catastrophe losses estimated to exceed 1,300 USD 100 million. Bermuda (re)insurers benefit from increased retention, limited coverage and restructuring plans to rein in premium budgets. The impact of climate change continues to be a concern for (re)insurers, with totals continuing to increase year-over-year. In recent years, insured losses and natural disaster losses have been driven by what are often considered “minor” disasters (e.g. floods, tornadoes, hail, wildfires, freezes, etc.) globally.
