Category: Comparative markets · Reviewed by Al Jabbar, Broker · Specialist Risks · Last reviewed 2026-06-05
The Bermuda reinsurance market is the world’s largest property catastrophe reinsurance market and a major specialty reinsurance centre. It is the principal venue for the global cession of US peak-zone catastrophe risk (Florida hurricane, California earthquake) and a leading market for life reinsurance, specialty casualty and ILS-collateralised reinsurance.
Category: Comparative insurance markets Jurisdiction / Domicile: Bermuda (British Overseas Territory) Regulator: Bermuda Monetary Authority (BMA) Founding statute: Insurance Act 1978 (Bermuda) Related concepts: Bermuda insurance market, Bermudian sidecar, Reinsurance
The Bermuda reinsurance market emerged in the 1990s with the formation of the property catastrophe reinsurers of 1992-93 (Renaissance Re, Mid Ocean Re, Tempest Re, IPC Re, Partner Re), expanded through subsequent class formations after major catastrophe events, and now provides approximately one-third of global property catastrophe reinsurance capacity. The market is highly concentrated in property catastrophe, with significant specialty (energy, aviation, marine, terrorism) and increasing volumes in life and casualty reinsurance.
Bermuda reinsurers are classified principally as Class 3, 3A, 3B, or 4 insurers under the Insurance Act 1978, with class determined by gross premium volume and risk concentration. Class 4 insurers — the largest, with the most stringent BSCR requirements — comprise the major property catastrophe reinsurers. Bermuda was granted Solvency II equivalence by the European Commission in 2016 (Delegated Decision (EU) 2016/309), allowing Bermudian reinsurance to be recognised on a parallel basis to EU reinsurance for cession credit purposes by EU insurers.
The Bermuda renewal cycle (typically January 1 for international and Florida treaties, mid-year for additional Florida and Atlantic hurricane renewals) is the principal annual capacity event in global reinsurance. Brokers (Aon, Guy Carpenter, Howden Re, Gallagher Re) place treaties on behalf of US and international cedants. The market interacts closely with the ILS market — many sidecars and catastrophe bonds reinsure Bermudian sponsors. Some major reinsurers have re-domiciled or split operations (Renaissance Re, Everest Re).
Lloyd’s is the largest single competing reinsurance market by gross premium written but Bermuda is the largest by net property catastrophe capacity. A UK property treaty cedant typically places its reinsurance programme partly through Bermuda and partly through Lloyd’s and the international reinsurance market.
A UK retail insurer reinsuring its UK and Ireland property catastrophe exposure of £15bn: a property catastrophe XL programme of £600m xs £200m, placed approximately 40% in Bermuda (RenaissanceRe, Hiscox Re, AXIS Re, Hannover Re Bermuda), 30% at Lloyd’s, 20% in continental Europe (Munich Re, Swiss Re), 10% via collateralised reinsurance and ILS.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-05. Next review: 2026-12-05.
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