Financial and insurance Sector Focus On Quality, Not Quantity
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Eugene Cox
Minister of Finance
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ith a Moody’s A1 rating in international business and a triple-A rating in domestic business, Bermuda has established a reputation as one of the world’s top financial centers. Eugene Cox, Minister of Finance and Deputy Premier, points out, “ If investors want to make legitimate international finance arrangements, they will choose a jurisdiction that will maintain its reputation of high quality in the future. This is what Bermuda offers.”
Bermuda’s outstanding growth over the past five years is due primarily to international business activities, particularly insurance. The financial sector has been successfully diversifying as well, a trend set to continue.
Explaining Bermuda’s success story, Cox says, “Bermuda has the fundamental services required for business. In addition, Bermuda has never focused on big numbers. We are about quality instead of quantity.” He adds that Bermuda has adopted a regulatory approach that ensures solvency through imposing significant capital requirements; the major insurance and reinsurance companies on the island must have a minimum capital of $100 million, one of the most stringent requirements anywhere in the world. |
| Bermuda’s financial sector is set for continued growth in the future. As Cox points out, the island has seen significant expansion in mutual funds activities, and the Bermuda Stock Exchange has achieved very strong performance. “Our financial institutions and our regulatory environment give investors the confidence to come to Bermuda,” Cox concludes, adding, “As an investor in Bermuda, you will be able to help to create the right business environment, and that is what people appreciate about us.” |
| Oil Insurance Limited |
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he OIL Group of companies includes — Oil Insurance, Oil Casualty Insurance, and the newest venture, sEnergy Insurance — that for the past 31 years has been providing cost-effective catastrophe insurance facilities that generates long-term financial value for its shareholders. Coverage and policy terms are tailored to the specific requirements and interests of the energy industry, and the group’s clients include many of the world’s leading oil, petrochemicals and utilities companies, around two-thirds of which are based in the US. |
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“We are a major player in the energy insurance marketplace.”
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OIL achieved record-breaking growth last year. Jack L. Wesley, President and Chief Executive Officer, says that 16 energy companies joined OIL last year, for an all-time high of 63 energy companies obtaining property damage and pollution liability insurance coverage from the company. He adds, “We have experienced an astonishing 30% growth in the utilities sector due to privatization and globalization. The three companies were formed due to various crises in the energy insurance market, and today have combined assets of about US $3.5 billion. The recent growth is generally coming from the utilities and chemicals market as we already have most of the oil and gas companies in the industry among our customers.”
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Jack L. Wesley
President and Chief Executive Officer
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With around 33 fulltime staff members, 70% of whom are Bermudan, OIL is committed to supporting Bermuda’s on-going prosperity. Local staff is hired whenever possible, but in some cases, OIL must recruit beyond Bermuda to find experienced energy and insurance professionals to help the company keep pace with new developments. He anticipates further growth, with new business coming from emerging markets throughout the world. He says, “We want to let companies around the world know that we are a major player in the energy marketplace.”
OIL aims to continue to focus on the energy sector and to remain in Bermuda. Wesley concludes, “It is our mission to continue to serve the energy sector, and Bermuda will continue to be the location of choice for us, as we have found that it is possible for us to operate effectively and efficiently here. We have found that there is no other business location in the world that even comes close to Bermuda. |
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