ABIR members contribute $8.5bn to Bermuda economy over 10 years
Latest survey highlights leading re/insurers’ economic benefit to Bermuda in 2020
ABIR members contribute $8.5bn to Bermuda economy over 10 years
Latest survey highlights leading re/insurers’ economic benefit to Bermuda in 2020
Hamilton, Bermuda (February 1, 2022) — Members of the Association of Bermuda Insurers and Reinsurers (ABIR) contributed $8.5 billion to the Bermudian economy over the decade ended 2020, according to a tally of annual member survey results.
Data reported over the period from 2011 to 2020 show that the group’s aggregate economic impact included $6.4 billion in compensation paid to employees in Bermuda. The remaining $2.1 billion included spending on travel, business services, charitable donations and construction/real estate.
The totals include the findings of the 16th annual ABIR Bermuda Economic Substance Survey, released today, which documents a direct economic contribution of $722 million from member companies in 2020.
“ABIR members’ commitment to Bermuda has resulted in billions of dollars of direct investment in the island’s economy over the past decade,” said Marc Grandisson, Chief Executive Officer of Arch Capital Group and Chairman of ABIR. “During the economic challenges of the COVID-19 pandemic, we are especially proud that our members have continued to contribute substantially through employment, on-island spending and record charitable donations.”
Highlights of ABIR members’ economic contributions in 2020 include:
• $576 million in total salary and benefits compensation paid to Bermuda-based employees.
• $66 million spent on business services, including legal, accounting, actuarial, temporary, information technology and other consulting services.
• $73.3 million on construction, real estate, housing and office space.
• $6.8 million spent on travel and entertainment in Bermuda, including hotels, airfares, restaurants, taxis and catering, a significant decrease compared to recent years because of the pandemic.
• $7 million in donations to Bermuda charities, including $2.1 million of COVID-19-related giving.
ABIR cautions that year-over-year comparisons will be misleading, because of changes in membership and in survey participation. In 2020, 24 of ABIR’s 28 full members submitted data.
ABIR member companies employed 1,332 people in Bermuda, of whom 920 were Bermudians, a category that also includes spouses of Bermudians, or permanent resident certificate holders (PRCs). The local component of the workforce has consistently measured around 70%. The salary and benefits median for ABIR members’ Bermudian employees in 2020 was $176,401.
A commitment to developing local talent was also evident from the survey data, with ABIR member companies offering 31 internships in Bermuda in 2020 along with over $1 million invested in scholarships to Bermuda students. Six respondents reported having graduate training programmes, while other workforce development initiatives included scholarships, tuition reimbursement, on-the-job training, scholarships and secondments.
All ABIR members have licensed operating companies in Bermuda and 42% also base their ultimate holding company on the island. Prominent among the other jurisdictions in which they operate are the United Kingdom, the United States, Ireland, Singapore, Switzerland and Canada.
ABIR members had a global workforce of 87,400 in 2020, including 37,937 employees in the US, 5,726 in the European Union and 42,405 in non-EU countries, including 8,125 in the UK.
“We are proud of how our members, as leaders in the global re/insurance market, have helped over time to build Bermuda’s reputation as the risk capital of the world, while also consistently investing in Bermuda’s economy and its people,” said John Huff, President and Chief Executive Officer of ABIR.
“ABIR members’ long-term commitment to Bermuda continues to show its value during the challenges of the pandemic. International business has sustained Bermuda government through the stability and reliability of payroll and local taxes. We’re especially proud of our members’ donations to Bermuda charities, which total more than $35 million over the past five years alone.”
# # #
About ABIR: The Association of Bermuda Insurers & Reinsurers (ABIR) represents Bermuda’s major property and casualty insurers and reinsurers doing business in 150 countries. Bermuda is an internationally recognized center of global expertise on underwriting for catastrophe, climate, cyber, mortgage & credit risk transfer products, along with other specialty insurance and reinsurance. For more information, please visit: www.abir.bm. Follow us on Twitter @ABIR_Bermuda.