Local employment at Bermuda's biggest insurance companies is holding firm despite the impact of the global economic downturn.

Figures compiled by the Association of Bermuda Insurers and Reinsurers (ABIR) show that its 24 member companies employed nearly 1,800 people in 2008, roughly the same as in the previous two years.

The fourth ABIR Bermuda Economic Impact Report also illustrates the massive impact of the insurance industry on the local economy, with total salary and benefits compensation for all staff working on the Island reaching $678 million last year. That figure is $82 million more than 2007 and $234 million — or 35 percent — greater than in 2007.

The roughly 1,100 Bermudians who work for these companies, around 63 percent of their workforce, enjoy compensation that is well above average on the Island.

The mean value of a salary and benefits package for a Bermudian employee of an ABIR company is $178,000. The median is figure is $125,000. ABIR has not collected this data in the past.

The report also breaks down what ABIR companies spend in the community. The global trends of falling business travel and less corporate entertaining are reflected to some extent.

ABIR members estimated they spent nearly $26 million in Bermuda on hotels, air fares, restaurants, taxis and catering — entailing a substantial portion of the Island's entire hospitality industry. But this figure was $2 million less than in 2007 and $4 million less than in 2006.

The 2008 travel and entertainment expenses were down seven percent from 2007 and 14 percent from 2006.

The ABIR companies pumped money into the Bermuda economy in other ways too, in their spending on business services, real estate and housing and charitable donations.

Spending on business services — which include accounting, actuarial, temporary and consulting services — on the Island rose to $78 million. That was $9 million more than in 2007 and a $27 million — or 34 percent — more than in 2006.

The trend of falling rents in the residential and commercial real estate sector is also reflected in the report. ABIR members spent almost $115 million on construction, real estate and housing costs on the Island last year. This was down $5 million from the previous year and $2 million from 2006.

It is well known that the US economy has benefited substantially through claims paid by ABIR members — catastrophe claims alone have totalled more than $30 billion since 2001.

But the companies also provide thousands of jobs in the US. In 2008, ABIR companies employed nearly 16,000 people in the US — 37 percent more than in 2007. Globally, they employed more than 31,000 staff — up from 23,000 in 2007.

ABIR members anticipate hiring 40 entry level employees in Bermuda this year, while nine of the companies operate internship programmes on the Island.