Bermuda's insurance industry is worth a staggering $6.8 million per person, if its total aggregated assets of $440 billion were distributed among the Island's population of 64,000.

The latest report by the Bermuda Monetary Authority (BMA) reveals that the Island's insurance sector is in good shape despite a softening global market after boosting its aggregate total assets by 33 percent, while increasing its gross premiums written to the tune of more than $15 billion.

The BMA's findings show that the Island's insurers reported aggregate total assets of $440.4 billion over the past year, compared to $329.9 billion the previous year.

Gross premiums written totalled $115.8 billion for the year, surpassing the $100.7 billion written the prior year. Of these amounts, captives accounted for $72 billion in total assets and almost $22 billion in gross premiums written.

A total of 71 new insurance and reinsurance companies were established in the Bermuda market during 2007, compared to 82 in 2006, the BMA reported. The fall in registrations reflected the generally softer market conditions globally, which saw a slowing of captive incorporations. In such conditions, companies typically are able to purchase reinsurance coverage at competitive rates in the traditional commercial markets.

According to the BMA, the majority of the new Bermuda market entrants for 2007 were once again Class 3 insurers, a combination of captive and commercial companies.

With respect to the commercial sector, 2007 saw the formation of two Class 4 companies. This reflected the general inactivity in the property and casualty market, and the relative lack of major catastrophic events during the year, resulting in the likely record profitability of existing insurers and a sufficiency of global capital in the property/casualty sector.

"We were very pleased to see that the tradition of quality business coming to Bermuda was maintained with the companies that were successfully established here during the year," said Jeremy Cox, deputy CEO of the BMA, who is responsible for all supervisory activities conducted by the Authority.

"The high quality of the sponsors behind the companies, in addition to the continued increases in premium volume written that we have been recording over the years, indicates that market confidence in Bermuda as a leading centre for international insurance and reinsurance remains strong. There is also a continued appreciation among those who participate in this market of Bermuda's effective, practical regulatory environment."

The BMA said it continued to place emphasis on enhancing its regulatory standards and operational capability during the year, to maintain effective regulation of Bermuda's growing market.

"We recently restructured our supervisory teams, added an actuarial team, created a risk and policy team and set up a run-off team," said Mr. Cox. "Key areas of supervision, such as our on-site programmes and risk-based capital adequacy regime are being expanded and refined. Overall, we are steadily enhancing the depth of technical skills and resources that we have within the Authority, as well as building on our existing compliance with international standards in terms of our regulatory framework."