Bermuda has been the domicile of choice for 57% of Insurance Linked Securities (ILS) during 2014, and the island is committed to retaining its top position for the creation, listing and servicing of the vehicles in 2015, said Bermuda Stock Exchange in a recent press statement.
It added that Bermuda was an early leader in embracing and supporting the ILS asset class by creating the right environment for the vehicles to thrive - and from a standing start in 2009, has grown to be the leading global domicile for ILS with nearly US$16 billion listed on the Bermuda Stock Exchange (BSX) at the end of 2014.
BSX President and CEO Greg Wojciechowski said that with competition developing, Bermuda must continue to innovate to remain ahead of the curve and retain its position as the premier ILS domicile in the world.
As the value of ILS reached record levels in 2014, Mr Wojciechowski said a number of other jurisdictions are trying to win more market share. Bermuda is facing strong competition from newcomers such as Malta, Gibraltar and Puerto Rico who are targeting ILS, as well as from the more established players such as the Cayman Islands, Guernsey and Dublin.
Mr Wojciechowski said the Bermuda Stock Exchange (BSX) has broken record after record for ILS listings, with the exchange reaching more than $15 billion in listed securities for the first time at the end of 2014.
In a banner year for the ILS sector, the BSX saw a 53% increase in its ILS listings from 77 in 2013 to 118 in 2014, further cementing its position as the jurisdiction of choice for the setting up, listing and support of ILS structures, he said. Meanwhile, the value of these securities grew to $15.91 billion from $9.71 billion from the same period last year.
As at 31 December, 2014, there was a total of 762 securities listed on the BSX. Included in the new listings in 2014 were several additional variable rate notes and programmes from Alamo Re, Azora Re, Citrus Re, Gator Re, Golden State Re II, Kilimanjaro Re, Kizuna Re II and URSA Re.