Bermuda's position as the top domicile for new reinsurance start-ups and companies moving jurisdiction is being seriously threatened by Europe.

That is according to Standard & Poor's Corp., who said in a report released on Wednesday that despite the US continuing to be a vital market for reinsurance, Bermuda and Europe were vying for "the top spot among reinsurers that are launching their businesses or considering a change of address".

In the past, the Island was attractive for start-ups with its relatively quick regulatory approval process, favourable taxes and proximity to the US. But in recent years, there has been a significant move of Bermuda-based reinsurers to Europe, particularly those offering re/insurance, said the report.

"From the mid to late 1990s through 2007, Bermuda was the location of choice for reinsurers that were setting up new businesses," Laline Carvalho, a credit analyst at S&P in New York, said in a statement accompanying the report.

"Start-up activity on the island was particularly strong in 2001 to 2002 following the September 11, 2001, terrorist attacks, as well as in 2005 to 2006 after Hurricanes Katrina, Rita, and Wilma."

Changes in taxation and regulations across the world have seen a renewed interest in Europe as a domicile, with particular interest in Switzerland and Ireland, according to the study.