Bermuda-based reinsurers have taken a five percent or a $6 billion share of the global market, according to a survey of trends in the industry by Swiss Re.

It's a market where bigger is better as insurers seek quality when ceding premiums to reinsurers. The report stated that as a result of market consolidation large professional reinsurers have been able to expand market share through takeovers and mergers.

"In the period 1990 to 1996, the four largest providers increased their market share from 22 percent to 29 percent,'' Swiss Re stated in the report.

"The percentage is now as high as 34 percent following the latest spate of acquisitions. The winners include the Bermuda-based reinsurers, who raised their global market share from zero percent to five percent, while Lloyd's saw its market share heavily eroded, from five percent to three percent.'' The report stated that in 1997 direct insurers ceded $124 billion worth of business to reinsurers worldwide.

An estimated 83 percent of the business was non-life insurers, and 17 percent for life and health insurers. The insurers ceded 14 percent of their non-life premiums and 1.5 percent of their life and health premiums.

About 75 percent of the ceded business came from North America and Europe, while four percent originated from Japan.

"In the period 1990-97, cessions in non-life insurance rose from $69 billion to almost $103 billion,'' Swiss Re stated.

Island's market share increases "This rise was fuelled mainly by above-average demand from North American insurers in response to the replacement of pools by reinsurance treaties.

"The results of the top reinsurance companies have continued to improve significantly in recent years, despite falling prices and more fierce competition,'' Swiss Re stated. "The positive results in the direct insurance business had a positive impact on reinsurance results, and in the 1995-1997 period reinsurers also benefited more than normal from the very low claims burden in the area of natural catastrophes.''