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Bermuda Reinsurance Leaders 2016

continues to reduce the number of companies on the Island while, at the same time, new companies and alternative vehicles are being formed with unique, somewhat untested business models. The spectrum of new strategies that we’re seeing is extremely interesting to observe. There are many more variations in asset strategies being employed, variations in how business is sourced and underwritten, and variations in targeted lines of business. If Darwin were alive today he might choose Bermuda over the Galapagos for developing his evolutionary theories. What will the main areas of growth for the Island’s risk transfer market? Bermuda will continue to be in the forefront of all the major industry segments: captive insurance, P&C insurance and reinsurance, alternative capital vehicles such as ILS funds, sidecars, hedge fund reinsurers and so on. Mortgage and life reinsurance are perhaps two areas with especially attractive growth prospects. What are the main challenges you see ahead? Success in the reinsurance industry is largely determined by human capital—the expertise and relationships of seasoned professionals. Bermuda has been faced with difficult choices and decisions as it works its way out of a recession, a high government debt burden and budget deficits. In order to further expand and attract international businesses, it will be necessary for Bermuda to maintain a stable political and regulatory environment as it works through these issues. I’m very optimistic that will be the case. Are there any other leaders you particularly admire for what they have done to help propel Bermuda to prominence as a risk transfer hub? The person who immediately comes to mind is Bob Clements. I had the honour and privilege of being introduced to him when Bermuda-based Arch Capital was formed in 2001. When it comes to the development of Bermuda’s insurance industry, his legacy is unparalleled in my mind and I know many others agree in that assessment. As is well known, he was the driving force behind the formation of ACE, XL, and Mid-Ocean and more recently a co-founder of Ironshore. It would be hard to overstate what he achieved during his career and how important he was to the development of the Bermuda insurance industry. BERMUDA’S REINSURANCE LEADERS Watford Re leverages the expertise and market access provided by two leading franchises in their respective fields: Arch Capital Group and HPS Investment Partners. The senior management team is led by John Rathgeber, a highly-respected reinsurance industry veteran with over 30 years of experience, the majority of which has been spent at executive officer level positions. Prior to joining Watford Re, Rathgeber was vice chairman of the Arch Worldwide Reinsurance Group and chairman of Arch Reinsurance Company, Arch’s US-domiciled reinsurer. He served as president and chief executive officer of Arch Reinsurance Company for eight years beginning with its formation in December 2001. He started his career at Prudential Re in 1980 and worked there until 1992. He is a former chairman of the Reinsurance Association of America and currently serves on its board of directors. Rathgeber holds a BA from Williams College and is a Chartered Property and Casualty Underwriter, a Fellow of the Casualty Actuarial Society and a Member of the American Academy of Actuaries. Do you believe Bermuda will remain a risk transfer hub? What has made it so successful in this sphere? Absolutely, I believe Bermuda will retain its prominence as a centre for risk-taking, risk management, and the provision of services related to these activities. Bermuda has always had a robust and pragmatic regulatory framework but the attainment of Solvency II equivalence greatly solidifies Bermuda’s reputation and credibility as a significant insurance jurisdiction. How do you anticipate Bermuda will continue to adapt and evolve? It will be fascinating to watch as consolidation activity “If Darwin were alive today he might choose Bermuda over the Galapagos for developing his evolutionary theories.” John Rathgeber Job title: Chief executive officer Company: Watford Re 28 2016 Bermuda:Re/insurance+ILS


Bermuda Reinsurance Leaders 2016
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