Bermuda’s insurance industry dominates financial landscape with over $1.6 trillion in assets

As of December 31, 2022, Bermuda’s total insurance assets accounted for US$1,634 billion, which is 83.7% of the total financial services sector assets, Bermuda’s Coordinated Portfolio Investment Survey (CPIS) for the year 2022 by the Bermuda Monetary Authority (BMA) revealed.

This revelation underscores the pivotal role played by the insurance sector in driving Bermuda’s economic prowess, solidifying its position as a global financial hub.

The CPIS report further highlights a substantial year-on-year increase, with total foreign portfolio holdings by the insurance sector reaching US$833.8 billion, reflecting a 9.8% surge compared to 2021 and an astonishing 151.3% increase over the past decade (2012-2022).

The bulk of these foreign portfolio investments in 2022 were directed towards debt securities, comprising a significant 85.7% (US$715.2 billion) of the total insurance foreign portfolio holdings.

Within this category, long-term debt securities accounted for 78.2% (US$652.4 billion), showcasing a robust upward trend over the years.

Interestingly, the distribution of portfolio assets reveals a nuanced shift in investment strategies. Equities, representing 14.2% (US$118.6 billion) of the total insurance foreign portfolio holdings, have seen a consistent linear growth.

Moreover, as of December 31, 2022, the share of equity holdings by the insurance sector stood at 14.2%, surpassing the average of 11.2% recorded from 2012 to 2022.

Geographically, the United States emerges as the primary beneficiary of Bermuda’s foreign portfolio investments, capturing a substantial 59.5% share amounting to US$495.8 billion.

Canada follows at 5.4% (US$45.2 billion), with the United Kingdom, Hong Kong, the Cayman Islands, and Luxembourg contributing significantly to the global distribution.

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