Reinsurer shift towards Europe from Bermuda predicted

Post Online - Reinsurer shift towards Europe from Bermuda predicted: "Reinsurer shift towards Europe from Bermuda predicted

Bermuda may continue to lose its favour amongst its domestic reinsurance companies in 2009, business advisory consultant SMART has said.

'Bermuda has recently been the location of choice for the reinsurance industry; however, it is possible that Bermuda is losing favour. The relocation of Ace, [the Bermudian firm of] Paris Re, and the operating structure of Flagstone Re to Switzerland may signify a shift in the global market toward Europe. In 2009, we can expect to see this trend continue, fueled by the regulatory changes including the Reinsurance Directive, Solvency II, and the OECD proposals for taxation.'

The comments highlight worries in the market that Bermudian reinsurers may be lose their tax advantage in the future thanks to proposed legislation - HR6969-by US Congress."