Bermuda registers seven new entities, including two collateralised reinsurers

Bermuda's Monetary Authority confirmed seven insurance registrations in July, among them two collateralised reinsurers and an agency licence for Nephila Capital. The Royal Gazette's list: Hector Insurance, a Class 1 captive; West Grove Re, Class E; Grove Re, Class 3A; Nephila Capital as agent; Brotherhood Denominational Reinsurance SAC, Class 2; and the collateralised pair LBI Reinsurance Bermuda and Lancer Re.

The additions take this year's registrations to 42 — 37 insurers and five intermediaries. Nine of the 2026 licences are Class E reinsurers, West Grove among them. Restricted special purpose insurers account for 12 registrations; collateralised insurers for another five. The licensing committee approved all six applications it reviewed in July, five new and one carried forward.

Insurance Capital Daily has tracked this pattern all year. Bermudian sponsors placed a record $1.37 billion of catastrophe bonds in the second quarter. Bermudian reinsurers now hold 40.7 percent of ceded US life liabilities, and sidecars keep taking share. AM Best expects the accumulating capital to test reinsurers' discipline in 2027.

These registrations are formalities. What matters is whether the capital behind them gets deployed or returned to investors when the 2027 renewals arrive.