Insolvency & Restructuring in Bermuda, with a focus on the liquidation of insurance companies
A practitioner’s perspective
This paper provides some of the distinct aspects of liquidating insurance companies in Bermuda from an insolvency and restructuring practitioner’s perspective.
Bermuda is a leading insurance market and is particularly renowned as a domicile of choice for captives. As of 2021, there were 1,158 registered insurers in Bermuda with total assets of $1.4 trillion. The jurisdiction enjoys a robust regulatory environment, bettered by years of refining to meet the demands of international businesses operating in Bermuda.
The Bermuda Monetary Authority (the “BMA”), in its 2021 Annual Report, noted that “Bermuda (re)insurers have paid out roughly $65 billion, $400 billion, and $60 billion to policyholders in the United Kingdom, United States and European Union, respectively, since 1997,” underscoring the eminence of the jurisdiction in the international insurance market.