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ARTICLE · 23 MARCH 2026

Capital Treatment For Bermuda Insurers Investing In Structured Assets

Walkers
Walkers
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Walkers

Walkers

Firm Details Global Managing Partner: Ingrid Pierce Office Managing Partner: Daniel Wood Number of...

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With the rise of insurer investment in alternative capital structures, we explore the two-step analysis required for efficient Bermuda capital treatment.

BermudaInsurance
Sarah Demerling
Sarah Demerling
Nathalie West
Nathalie West
Gary Harris
Gary Harris
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Key takeaways

  • With the rise of insurer investment in alternative capital structures, we explore the two-step analysis required for efficient Bermuda capital treatment.
  • An asset that appears efficient under the Bermuda Solvency Capital Requirement (BSCR) can still create challenges once liability fit and asset liability management (ALM) are tested.
  • Labels and ratings do not finish the inquiry as the Bermuda Monetary Authority (BMA) focuses on substance, look-through, collateral quality, liquidity and the strength of the evidence supporting the underlying structure.

Why sophisticated Asset-Backed Securities (ABS), Funding Agreement-Backed Notes (FABNs), Rated Note Feeders and related alternative capital structures require a two-step analysis across the balance sheet of a Bermuda insurer

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