Bermuda - International BusinessBermuda - International Business
Overview
International business (IB) - primarily insurance and reinsurance - is Bermuda’s economic foundation, contributing the greatest amount to the Bermuda economy in 2014: $1.53 billion or 27.1% of total GDP, a 0.2% increase over 2013. IB employed 3,937 people, or 11% of all filled jobs.
In common with similar jurisdictions that host IB sectors, Bermuda’s Department of Statistics does not recognize the international business sector as a resident industry. By law, international (called “exempt”) businesses registered in Bermuda generally are not permitted to conduct business or sell their products in Bermuda.
Sub-Sector Best Prospects
Bermuda’s IB (exempt) sector comprises insurance, reinsurance, insurance captives, insurance-linked securities (ILS), and other financial services such as securities trading, commodity brokering, shipping, and consultancy. Fitch Ratings’ January 2016 report, “Bermuda 2016 Market Update,” gave a stable rating outlook on global reinsurance, including in Bermuda. However, Fitch expected prices to continue to fall in 2016 while investment yields will remain close to historic lows. Fitch noted that the European Commission awarded Bermuda full equivalency with Solvency II, which was formally implemented on Jan. 1, 2016, “enhancing Bermuda’s global competitiveness.”
Opportunities
IB remains the largest single component of Bermuda’s economy. Current opportunities for U.S. investors are in insurance, reinsurance, captive insurance, investment holding, insurance-linked securities (ILS), and general financial services.
Web Resources
Association of Bermuda Insurers & Reinsurers: www.abir.bm
Association of Bermuda International Companies: www.abic.bm
Bermuda Business Development Agency: http://bermudabda.com
Bermuda Monetary Authority: www.bma.bm
Ministry of Finance: www.gov.bm
Registrar of Companies: www.roc.gov.bm
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2014 |
2015 |
2016 |
2017 (Estimated) |
Market Size |
3,937 |
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Local Production |
$1,530,000 |
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Imports |
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Exports |
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Total Market Size |
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$US thousands (total market size = (total local production + imports) – exports
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.