Coming off a remarkable 2025, which saw the registration of new collateralized insurer class of companies in Bermuda climb to its highest level ever, early indicators for Q1 2026 suggest a continuation of this growth trend with seven new special purpose insurers (SPIs) and two new collateralized insurers having registered in Bermuda during the opening quarter.
As we previously reported, in full-year 2025, the number of SPIs registered by the Bermuda Monetary Authority (BMA) reached a staggering 25, an increase of four over the 21 SPI’s registered in 2021.
At the same time, a total of 10 new collateralized insurers were also registered in Bermuda last year too.
According to new data from the BMA, early indicators from the opening quarter of 2026 show that this growth trend will likely continue throughout the year.
According to the Authority’s latest market data, seven new SPIs and two new collateralized insurers have registered in Bermuda in Q1 2026, reflecting continued demand for fully collateralized reinsurance and capital markets structures.
Further data also collected by the BMA for Q4 2025 also shows continued strong growth in Bermuda’s alternative capital and insurance-linked securities (ILS) market.
Data from the BMA shows that as of the end of Q4 2025, Bermuda-based ILS funds represented approximately 8% of all regulated funds in Bermuda, accounting for 6.1% of total net asset value. This represents a 5% increase from the end of Q4’24, and a 4.4% increase from the end of Q4’23.
The BMA’s data also revealed that Bermuda-based ILS funds also reported net asset values of $13.71 billion in Q4 2024, continuing a multi-year growth trend.
“Bermuda’s investment fund framework supports growth by offering fund classes tailored for institutional and sophisticated investors participating in alternative capital and ILS and strategies, including collateralised reinsurance. The market growth contributes to Bermuda’s wider alternative capital market, which includes traditional insurers, Special Purpose Insurers (SPIs), and collateralised insurance structures that facilitate the efficient transfer of catastrophe and other insurance risks to global capital markets,” the BMA explained.
Mellisa Burgess, Director of Supervision at the Bermuda Monetary Authority, commented: “Bermuda continues to serve as a premier jurisdiction for connecting global capital to insurance and reinsurance risks.
Adding: “The BMA provides a stable, transparent and efficient regulatory environment that underpins the continued growth and resilience of the alternative capital and ILS market. This is supported by the Authority’s fit-for-purpose regulatory framework for insurance and investment structures and speed-to-market approvals for Special Purpose Insurers conducting cat bond transactions.”
The latest data from the Bermuda Monetary Authority (BMA) shows that the island continues to maintain its position as the leading domicile for insurance-linked securities (ILS) of all kinds, as well as for the expanding use of third-party capital within structures that directly source reinsurance-linked returns for investors.
It’s important to remember, that Bermuda is also home to the vast majority of catastrophe bond issuance through listings on the Bermuda Stock Exchange (BSX).
You can read about and view details of many of the Bermuda registered SPI’s and other ILS structures in our catastrophe bond Deal Directory and our reinsurance sidecar transaction listing.
