Bermuda welcomed 13 new captive insurance companies in 2016, the island’s financial regulator announced today.

The Bermuda Monetary Authority said most of the new operations originated in the US, but two of them hailed from South and Central America.

In total, the BMA had 776 active captive licences on its register at December 31, 2016, maintaining its status as one of the world’s biggest captive domiciles.

A captive is an insurer predominantly formed to self-insure its parent company.

Bermuda’s captive register remained stable in 2016, with new registration levels consistent with the overall captive market. Last year, a total of 13 new captives registered in Bermuda, the majority of which originated from the US, however, two new captives hailed from the emerging markets of South and Central America.

Craig Swan, the BMA’s managing director, supervision, said: “The Authority continues to ensure that Bermuda’s captive sector, which has made significant contributions to Bermuda’s economy for well over 50 years, remains appropriately regulated.

“The global companies that operate captives from Bermuda expect top-quality regulatory standards.

“As such, the Authority ensures that its supervisory framework for captives, has remained aligned with the Insurance Core Principles of the International Association of Insurance Supervisors.”

Jereme Ramsay, business development manager at the BDA, said Bermuda captives have written premiums worth $55.3 billion — more than four times the figure in the nearest competitors.

He added: “Additionally, we are seeing increasing interest from emerging markets such as Central and South America, where, not coincidentally, the BDA has been focusing business development efforts over the past year.”

The island has registered a captive from Chile, the first on the island, as well as a new one from Mexico.

Mr Ramsay said: “We’re finding captives are becoming popular as wealth preservation vehicles for high net worth individuals and family offices from this region.”

He added: “We’ll continue to educate corporate markets about what sets Bermuda apart — its premier regulatory reputation, for example, and its commercial insurance and reinsurance sector that offers captive owners and operators access to open-market underwriting capacity.

“It is these advantages that make Bermuda such a highly attractive one-stop shop.”