No Question You'll See More Life Reinsurers In Bermuda

While the emergence of property and casualty (P&C) startups in Bermuda is likely to be muted in the months ahead, the influx of life reinsurers is expected to continue and will only strengthen the Bermuda marketplace, according to Brad Adderley, Partner at global law firm Appleby.

An expectation of significant rate increases at Jan 1, 2021 and beyond, driven by the impacts of the prolonged softened market, fading investment returns and the compounding effects of the pandemic and natural catastrophes, saw Bermuda attract a lot of startup capital during 2020.

Notably, funding for newcos and capital raises focused mostly on the P&C side, but with rate improvements throughout the year having been described by many as disappointing, in part as a result of the aforementioned influx of capital, the outlook for 2021 looks somewhat different.