Analysis of the solvency capital requirement of 72 Bermuda based insuers and reinsurers reveals a mixed picture of capital strength.
The overall Enhanced Capital Requirement Ratio (ECR ratio) of the sample is 224%, down from 263% in 2023.
Just over half the insurers in the sample reported an increase in the ECR ratio in 2024
The chart below shows the drivers of the ECR ratio (a function of the eligible capital to meet the ECR over the ECR).
CHART
The columns (left axis) show the percentage change of the available capital and ECR. The line (right axis) shows the percentage change of the ECR ratio year-on-year.
As has been observed elsehwere dramatic shifts in the capital do not necessarily drive a similar shift in the ratio, see for example, Somerset Re that reported an increase of over 140% in both eligible capital and ECR resulting in a 10% drop in the ratio.
The insurers in the sample reported USD 209.5 billion in Eligible Capital to meet the ECR, a 6% increase on last year.
Data for the sample is extracted from company filings: Bermuda Financial Condition Report by the Bermuda Insurance Database, powered by Solvency II Wire Data.
