Once again, Bermuda has shown its dominant position as a home to structures used for catastrophe bond and insurance-linked securities (ILS) arrangements in 2024, with companies set up for this purpose dominating registrations of new insurance and reinsurance entities in Bermuda last year.The number of catastrophe bond and insurance-linked security (ILS) related registrations was down year-on-year, as the number of new cat bond vehicles dropped.But, this is related to the fact cat bond issuance vehicles can be used multiple times over many years and last year saw a bumper crop of new cat bond vehicles, rather than any registrations being seen anywhere else around the world in other domiciles.2024 resulted in 19 registrations of new restricted special purpose insurers (SPI’s) in Bermuda, which are in the main vehicles for issuing catastrophe bonds, according to Bermuda Monetary Authority (BMA) data.

This was down, as said, on the 29 registered in 2023, but with these SPI structures reusable, it does tend to fluctuate and still we saw incremental new sponsors entering the catastrophe bond market in 2024 and using Bermuda as a domicile for their issuers.There were 2 new unrestricted SPI’s registered in Bermuda in 2024 as well, 1 less than 2023, which are structures typically used for risk transformation and fronting of insurance-linked securities (ILS) capital, as well as other collateralised reinsurance transactions, having a broader remit than just cat bonds.One structure that activity increased for was the collateralised insurer class company in Bermuda, with 5 of these registered in 2024, up on 2023’s 2.

In addition, there were 7 other insurance and reinsurance related company registrations in Bermuda across other classes that we can identify as linked to ILS strategies, or for third-party capitalised life reinsurance sidecar structures in 2024.Overall cat bond ILS and third-party capital linked company registrations in Bermuda therefore reached 28 for full-year 2024, which while down on 2023’s record of 37, remains close to long-term averages.Over the course of full-year 2024, the Bermuda Monetary Authority (BMA) reported that 63 re/insurers were registered, as well as 12 intermediaries, for total insurance and reinsurance related company listings of 75 for the year.

Which compares to , 80 re/insurers and 4 intermediaries registered in Bermuda in 2022, 64 re/insurers and 14 intermediaries registered in 2021, and 67 re/insurers and 5 intermediaries in 2020.With 28 of the registrations in 2024 being related to insurance-linked securities (ILS), across catastrophe bonds, transformers, collateralized reinsurers, sidecars and one manager, it has again been a very strong year that served to further drive home the dominant role in global ILS that Bermuda has created for itself.As we also reported recently, , with roughly 92% of outstanding catastrophe bond issuance finding a home there as of the end of the year.

You can read about and view details of many of the Bermuda registered SPI’s and other ILS structures in our , our and our ..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.