Captive Review (CR): How significant is
the current trend towards consolidation in the insurance
market?
Jonathan Betts (JB): It is very significant and
we certainly expect the trend to continue. Over the past five or so
years, there has been much discussion about the expected
consolidation of the market and it has been clear that there has
been an appetite for mergers and acquisitions among Bermuda's
reinsurer/insurers. However, apart from the acquisition of IPC
Holdings by Validus Holdings in 2009 and Markel Corporation
acquiring Alterra Capital in 2013 there was relatively limited
activity.
Clearly, one of the factors limiting activity was the fact that
the hedge funds and others with capital looking to access the
reinsurance market have been doing so via new ILS vehicles rather
than funding the acquisition of existing players. But the status
quo was shaken somewhat by the decision of Endurance Specialty
Holdings in Q1 2014 to make a hostile takeover bid for
