Bermuda’s SPI and Collateralized Insurer Uptake Maintains Momentum in Q1: BMA

Why It Matters

The surge in SPIs and collateralized insurers expands capacity for global reinsurance capital, while the rising share of ILS funds signals deeper investor appetite for catastrophe risk exposure. Together, they cement Bermuda’s pivotal role in the worldwide insurance‑linked securities ecosystem.

Key Takeaways

• Seven SPIs and two collateralized insurers registered in Q1 2026
• ILS funds now 8% of Bermuda’s regulated funds, up 5% YoY
• Net asset value of Bermuda ILS funds reached $13.71 billion
• BMA cites stable, transparent regulation driving alternative capital growth
• Bermuda remains primary domicile for catastrophe bond issuance via BSX

Pulse Analysis

Bermuda’s insurance‑linked securities market continues to outpace peers, driven by a steady pipeline of new special purpose insurers (SPIs) and collateralized insurers. The BMA reported seven SPIs and two collateralized insurers in the first quarter of 2026, extending a record‑setting trend that began in 2025 when 25 SPIs were registered. This influx of entities not only diversifies the island’s reinsurance capacity but also deepens the pool of capital available for catastrophe bonds and sidecar structures, reinforcing Bermuda’s reputation as a global hub for alternative risk financing.

The growth is reflected in the expanding footprint of ILS funds, which now account for roughly 8% of all regulated funds on the island—a 5% jump from the end of 2024. With a combined net asset value of $13.71 billion, these funds illustrate heightened investor confidence in the risk‑adjusted returns offered by cat‑bond and sidecar investments. The rising fund share signals a broader shift among institutional investors toward allocating capital to non‑traditional assets that hedge against climate‑related losses, positioning Bermuda at the forefront of this strategic allocation trend.

Underlying this momentum is the BMA’s proactive regulatory stance. By maintaining a transparent, fit‑for‑purpose framework and offering rapid approvals for SPI cat‑bond transactions, the authority reduces time‑to‑market and operational friction for issuers and investors alike. This regulatory agility not only attracts new market participants but also sustains the island’s competitive edge as the primary domicile for catastrophe bond issuance via the Bermuda Stock Exchange. Looking ahead, continued growth in SPIs and ILS fund assets is likely, as global capital seeks resilient, high‑yield opportunities in an increasingly volatile climate landscape.