8/3/2019 829-January 2012 Regulatory Update (FINAL)
1/20
Regulator Update Januar 2012
8/3/2019 829-January 2012 Regulatory Update (FINAL)
2/20
Table o Contents
Preace 1
Regulatory and 2Legislative Developments
1. Insurance 22. Banking 33. Investment Funds 44. Anti-Money Laundering (AML) 4
International Outlook 5
Market Analysis and Statistics 7
1. Bermuda Money Supply 72. Domestic and Foreign 8Currency Position
3. Bermuda Stock Exchange (BSX) 94. Banking 105. Investment Funds 136. Insurance 147. Company Authorisations 15
Statistical IndexBermuda Money Supply 7
BD$ Deposit and Loan Prole - 8
Combined Banks and Deposit Companies
Foreign Currency Position - 8
Combined Banks and Deposit Companies
Bermuda Stock Exchange (BSX) 9
Banking Sector Assets and Deposits 10
Regulatory Capital to Risk Weighted Assets 11
Combined Balance Sheet o Bermuda 12
Banks and Deposit Companies
Investment Funds Statistics 13
Insurance Company Registration Statistics 14
Companies, Partnerships and 15
Permits Statistics- Applications Approved
Regulatory Update January 2012
8/3/2019 829-January 2012 Regulatory Update (FINAL)
3/20
01
Preace
This bulletin reports on recent activities at the
Bermuda Monetary Authority (the Authority)
and recent developments aecting the nancial
sector, as well as the community generally.
Attached to it are the regular statistical data
covering Bermuda dollar money supply, Bermuda
banks balance sheet analysis and other nancial
and company sector inormation, updated or
the quarter ended 30th September 2011.
The Regulatory Update is published in print
and electronic ormats. The electronic version
is available on the Authoritys website
www.bma.bm and can be downloaded as a
PDF le. I you wish to receive an email notice
when the electronic version is available, you
may sign-up to our e-subscriptions service by
emailing your request to [email protected].
I you currently receive the print version and
would like to receive the electronic version
instead, please indicate this in your request.
8/3/2019 829-January 2012 Regulatory Update (FINAL)
4/20
1. INSURANCESecondary Insurance Legislation Passed
New and amended legislation relating to solvenc
and capital requirements or Bermuda insurers was
introduced to the House o Assembl during the last
two quarters o 2011; each were eective as o 31st
December 2011:
Insurance Amendment Act 2011
Ater consulting with the Bermuda market, the
Insurance Act 1978 (The Act) was amended to etend
enhanced solvenc reporting requirements to Class3A and Class E (Long-Term) insurers. These regulator
requirements are in line with those applicable to other
commercial insurers in Bermuda.
The Act also makes provision or the paid up share
capital requirement or Classes C, D and E insurers to
be $250,000 as opposed to the current requirement
o $500,000. Additionall, ee provisions are to
be amended to allow insurers to pa a prorated
registration ee and or the Authorit to take variations
in business volumes into account when considering
annual ees or insurers.
In addition, the same restrictions that the Authoritcurrentl applies to Class 4 and Class 3B insurers as
regards applications to reduce statutor capital will be
imposed on Classes 3A, Class C and Class D insurers.
Consequential amendments are also made to the
Insurance Accounts Regulations 1980.
Enhanced Solvency Requirements Rules Class 4 and Class 3B Insurers
The Insurance (Prudential Standards) (Class 4 and
Class 3B Solvenc Requirement) Amendment Rules
2011 (Class 4 and 3B Rules) build on eisting
solvenc regime or such rms. The Class 4 and 3B
Rules includes provisions or the Authorit to revokeits approval or rms to use an approved internal
capital model when no longer appropriate. The also
establish more requent lings rom rms that are not
members o an insurance group or which the Authorit
is the appointed Group Wide Supervisor, i.e. quarterl
nancial returns.
Applying BSCR and Internal Models Regimesto Class 3A and Class E Insurers
The basis or appling the Authorits enhanced
solvenc ramework to set regulator capital or Class
3A and Class E (Long-Term) insurers is now established
under two sets o new rules: the Insurance (Prudential
Standards) (Class 3A Solvenc Requirement) Rules
2011 (Class 3A Rules) and the Insurance (Prudential
Standards) (Class E Solvenc Requirement) Rules 2011
(the Class E Rules).
The Class 3A Rules provide or calculating the
applicable eligible capital requirement or such insurersusing the Authorits standard Bermuda Solvenc
Capital RequirementSmall and Medium Entities (BSCR
SME) model. The enable Class 3A rms to appl to
use an internal capital model instead o the standard
BSCRSME model. The Class E rules establish similar
provisions or Bermudas largest lie insurers, using
the standard BSCR model. To build urther eciencies
into this process, the Authorit is also establishing the
platorm or rms in both sectors to submit their capital
and solvenc returns electronicall. These submissions
will include, among other details, the Commercial
Insurers Solvenc Sel-Assessment and a Schedule o
Eligible Capital.
Applying Solvency Standards under GroupSupervision Framework
A series o rules are now in place that establish the
basis or the Authorit to appl its enhanced solvenc
regime and risk management standards to Bermudas
insurance groups. This includes appling the BSCR,
corporate governance requirements and eligible capital
rules to groups or which the Authorit is appointed
Group Wide Supervisor.
The Insurance (Prudential Standards) (Insurance Group
Solvenc Requirement) Rules 2011 prescribe the
method or determining the BSCR or all such insurance
groups, and other statutor ling requirements related
to solvenc which the le annuall with the Authorit.
These Rules shall take eect on 31st December
2011 with the eception o paragraph 3 o the Rules
regarding the dut to compl with the enhanced capital
requirement, which will come into eect on 1st Januar
2013.
Regulatory and LegislativeDevelopments
02Regulatory Update January 2012
8/3/2019 829-January 2012 Regulatory Update (FINAL)
5/20
03
The Insurance (Group Supervision) Rules 2011 (the
Group Rules) establish corporate governance and
risk management requirements or insurance groups.
The Rules have been drated to appropriatel refect
the regulator requirements or insurance groups based
on the nature, size, scale and compleit o Bermuda
groups or which the Authorit serves, or epects to
serve as Group Supervisor.
Insurance groups will be supervised or corporate
governance requirements through desk-based and on-
site reviews conducted in a manner broadl similar to
eisting reviews or solo insurers. The will be epected
to demonstrate compliance with the Group Rulesthrough establishing, maintaining and documenting
governance sstems and processes, with related
communications and reporting structures. The groups
must also establish and maintain eective ke unctions
(i.e. internal audit, compliance, risk management and
actuarial). The Group Rules will be eective on 1st
Januar 2013 with the eception o the requirements
or ling statutor returns and group nancial
statements, which will be in eect or lings made in
2012.
Group Supervision and Insurer
Capital AdequacyIn Q4 2011, the Authorit piloted a trial run o the
Groups BSCR with Class 4 and Class 3B insurers or
2010 ear end lings. Phased implementation o
the BSCR or other classes o insurers is epected to
continue through Q4 2013.
2. BANKINGAuthority Publishes Basel IIIDiscussion Paper
In December 2011, the Authorit published a Discussion
Paper which represents the rst step in the process oenhancing Bermudas current regulator ramework
or banks in line with Basel III. The purpose o this
paper is to make the banking sector aware o the ke
eatures o Basel III, to oer preliminar thoughts on its
implementation or Bermuda banks and to seek initial
eedback rom the banks and other stakeholders prior
to a planned ormal consultation process.
The Basel III rules orm part o the Basel Committee on
Banking Supervisions (the Basel Committee) response
to the weaknesses in eisting international banking
supervisor standards highlighted during the nancial
crisis. The ke eatures include:
A reie capial framework; regheig he
qualit o regulator capital; revising minimum capital
standards to more accuratel refect risk; and the
introduction o an additional leverage standard
Frher ameme o rik maageme giace
under Pillar 2
Expaio of exiig marke iciplie atransparenc rules under Pillar 3
Irocio of a ieraioall obere reglaor
minimum liquidit requirement
The Paper is available on the Authorits website,
www.bma.bm, and the market should submit
comme o he BMA b 29h Febrar 2012.
Consultation on Corporate GovernanceCode or Banks Underway
The Authorit has begun consultation with the market
on its proposal to establish a Corporate Governance
Code or Bermudas banks.
During the recent global nancial crisis, poor corporate
governance was identied as one o the ke actors
contributing to banking ailures. One o the Basel
Committees responses to the situation was to seek
to raise the standard o international governance
practice through revision o its Principles or Enhancing
Corporate Governance. The Authorit has sought
consistenc with the Principles in the development o
the Code it is proposing or Bermuda.
The drat Code sets out 13 principles with related
guidance and covers the ollowing ke areas: board
practices; the role o senior management; risk
management and internal controls; compensation;
comple corporate structures; and disclosure and
transparenc.
The drat Code is available on the Authorits website,
www.bma.bm, and the market should submit
comme b 29h Febrar 2012.
8/3/2019 829-January 2012 Regulatory Update (FINAL)
6/20
04Regulatory Update January 2012
3. InvEstMEnt FundsPhased Rollout o ERICA Begins
In Q4 2011, the Authorit began a phased rollout
o its Electronic Regulator Inormation Compliance
Application (ERICA) to a select group o companies
in Bermudas investment sector. ERICA is designed to
increase the ecienc o processing submissions sent to
the BMA b the unds industr. This will assist Bermuda
to remain competitive as a world-class nancial
services centre, while at the same time maintaining the
integrit o our procedures or reviewing and analsing
submissions. The remaining investment companies willbe added into ERICA in earl 2012.
4. ANTI-MONEy LAUNDERING (AML)AML On-site Programme
As noted in the last issue o the Regulator Update,
the ocus o the Authorits AML on-site programme in
2011 has been on those institutions which hold trust or
investment business licences. To date, the Authorit has
conducted 17 on-site visits: nine at trust companies, ve
at investment companies, two at banks and one at a
mone service business. Preparations or the desk-basedreview programme the Authorit plans to conduct
in 2012 have commenced, with the development
o operational procedures and a statistical reporting
database or scoring compan submissions.
Trust Sector Guidance Notes ConsultationPeriod Complete, Comments Under Review
Consultation has ended on a drat set o Guidance
Notes designed to assist trustees in understanding and
compling with their AML obligations. The sector-
specic AML-guidance covers all AML regulations or
the trust sector, including the Bermuda Association o
Licensed Trustees. The Authorit is currentl reviewingcomments received rom the industr and will issue the
nal Guidance Notes in earl 2012.
Industry Seminars Successul OutreachRaises Market Awareness
To date in 2011, the AML unit has conducted si
outreach seminars: one at Buttereld with the
remainder in the trust and investment industries. The
purpose o the outreach seminars was to improve
AML awareness in the market and ocused on themes
that arose out o on-site visits. The AML Unit received
positive eedback rom the seminar participants. An
internal seminar was also held regarding ongoing
monitoring o the Trust sector. The Authorit is in the
process o preparing or a series o seminars to the
F a F Amiiraio ir.
8/3/2019 829-January 2012 Regulatory Update (FINAL)
7/20
05
Authority Attends the Annual Meeting othe Group o International Finance CentreSupervisors (GIFCS)
Marcia Woolridge-Allwood, Director, Banking, Trust &
Ieme aee he Aal Meeig of he GIFCs
ormerl the Oshore Group o Banking Supervisors
in Labuan, Malasia rom 20th to 23rd September
2011.
Major themes o discussion at the meeting ocused
on the jurisdictional impact o signicant global
developments in banking, investment and AML
regulation. Participants also discussed lessonslearned rom the nancial crisis. Highlights included:
implemeig Bael III; he Fiacial Acio tak
Force (FAtF) reiew of he 40 recommeaio i
preparation or the 4th round o mutual evaluations;
the impact o the G20 and other international
orgaiaio o GIFCs member; a Hege F
Regulation.
34th Plenary o Caribbean Financial ActionTask Force (CFATF)
Shauna MacKenzie, Director o Legal Services and
Eforceme aee he 34h Plear of CFAtF which
was held in Venezuela. The Plenar adopted a numbero changes to the governance o the organisation as
well as the adoption o a sanctions regime or member
states which are not responding in a satisactor
manner to ollow up reports. This regime mirrors the
approach ake b FAtF. I aiio o he Plear
meeting, there were two special working groups
held. One working group dealt with the review o the
chage o he FAtF 40 pl 9 recommeaio. the
eco workig grop ice he FAtF acio
regime a CFAtF approach.
Association o Certifed Anti-Money
Laundering Specialists (ACAMS) 10th AnnualInternational Money Laundering Conerence
During Q3 2011 members o the Authorits AML
unit attended the ACAMS 10th Annual International
Mone Laundering Conerence. The conerence
covered updates on international developments with
repreeaie from he us Feeral depoi Irace
Corporaio, Fiacial Crime Eforceme nework,
Feeral Reere, Ofce of he Comproller of he
Currenc and Egmont Group.
Authority Presents at InternationalAssociation o Insurance Supervisors(IAIS) workshop
William Kattan, Senior Advisor presented at the
International Association o Insurance Supervisors
(IAIS) workshop on the IAIS Multilateral Memorandum
of ueraig (MMOu) i vicoria Fall, Zimbabwe.
Along with other IAIS representatives, Mr. Kattan
presented to regional insurance supervisors on
international developments in supervisor cooperation
and inormation echange, as well as the IAIS MMOU
ramework and its accession and administration
procedures.
Regulation Presentations Support CaptiveMarket Outreach in Canada and US
Shelb Weldon, Director, Insurance Licensing and
Authorisation promoted Bermudas captive industr
at the Risk and Insurance Management Society
(RIMS) Canada Conerence held in Ottawa, Ontario
rom 18th to 21st September 2011.
A Bermuda Insurance Development Council
seminar was held rom 15th to 16th November 2011
in Toronto, Ontario. Mr. Weldon gave an educational
session about the Bermuda captive market and alsotook part on a panel that consisted o captive owners,
service providers and regulators.
Captive Live was held in Chicago, Illinois rom 26th
to 27th September 2011. Mr. Weldon participated
in interactive panel sessions, debated changing
regulations, networked with major plaers rom across
the US captive insurance market and met leading
advisors and service providers.
Mr. Weldon also participated in theAmerican Society
o Healthcare Risk Managementconerence held in
Phoeni, Arizona rom 16th to 19th October 2011. The
Conerence ocused on staing current with industrchanges and enhancing management skills, including
how to respond to a changing healthcare industr.
Authority Participates in Business BermudaFinancial Services Event
Leslie Robinson, Assistant Director, Insurance Licensing
& Authorisation presented at the Business Bermuda
Financial Services event in New york on 5th October
2011. Mrs. Robinsons discussions centred around the
International Outlook
8/3/2019 829-January 2012 Regulatory Update (FINAL)
8/20
06Regulatory Update January 2012
legal and licensing requirements or insurance business
operations in Bermuda, including inormation on the
steps and requirements or incorporating in Bermuda;
regulator and licensing requirements; insurance
products; retirement products and mandated emploer
contributions and benets.
Authority Presents at IAIS AnnualConerence, Financial Stability InstituteRegional Seminar
In September 2011, Marcelo Ramella, Deput Director,
Polic, Research & International Aairs travelled to
Seoul, South Korea or the IAIS Annual Conerencewhere he made a presentation about the insurance
sectors response to natural disasters in particular the
Japanese earthquake.
In November 2011, Dr. Ramella took part in the
Fiacial sabili Iie (FsI) Regioal semiar for
Supervisors rom Arica on Strengthening Insurance
speriio a Promoig Fiacial sabili i
Mauritius. Dr. Ramella presented inormation on risk-
based regulation and supervision; macro prudential
approaches to surveillance and insurance supervision;
and on regulation and supervision o captive
(re)insurers, and gave training on macro prudential
supervision.
8/3/2019 829-January 2012 Regulatory Update (FINAL)
9/20
07
Market Analysis and Statistics
1. BERMUDA MONEy SUPPLy
The domestic mone suppl contracted during the quarter, declining b almost 1.5% when compared to the prior period, and
was 3.3% lower than the ear earlier (on an unconsolidated basis). The main driver o the quarter-on-quarter decrease was a
1.6% decline in deposit liabilities.
Bermuda Money Supply
(BD$ millions) 2011-Q3 2011-Q2 2011-Q1 2010-Q4 2010-Q3 2010-Q2
Notes & Coins in Circulation* 120 121 118 127 122 134
Deposit Liabilities 3,582 3,641 3,637 3,660 3,706 3,719
Total 3,702 3,762 3,755 3,787 3,828 3,853
Less: Cash at Banks and Deposit Companies** 56 62 62 65 60 73
BD$ Money Supply 3,646 3,700 3,693 3,722 3,768 3,780% Growth on Previous Period -1.46% 0.18% -0.78% -1.22% -0.32% -0.89%
Growth Year-on-Year -3.25% -2.13% -3.17% -4.73% -3.90% 0.18%
Totals may not add due to rounding.
* This table includes the supply o Bermuda dollars only. United States currency is also in circulation in Bermuda but theamount has not been quantied.
** Includes deposit companies as well as banks.
N.B. Note that the deposit liabilities or end-September 2010 have decreased b $19 million due to re-statement. This also
led to a downward revision o cash at banks and deposit companies b $1 million.
8/3/2019 829-January 2012 Regulatory Update (FINAL)
10/20
08Regulatory Update January 2012
BD$ Deposit and Loan Profle Combined Banks and Deposit Companies (Unconsolidated
(BD$ millions) 2011-Q3 2011-Q2 2011-Q1 2010-Q4 2010-Q3 2010-Q2
Deposit Liabilities 3,582 3,641 3,637 3,660 3,706 3,719
Less:Loans, Advances and Mortgages (5,268) (5,213) (5,230) (5,165) (5,146) (5,390)Surplus Deposits (1,686) (1,572) (1,593) (1,505) (1,440) (1,671)
Percentage o Deposit Liabilities Loaned 147.1% 143.2% 143.8% 141.1% 138.9% 144.9%
Totals may not add due to rounding.
Following recent amalgamations within the sector, separate data or deposit companies are no longer published.
*Note that the deposit liabilities or end-September 2010 have decreased b $19 million due to re-statement during the last
quarter. This also led to a downward revision o cash at banks and deposit companies b $1 million.
The proportion o BD$ loans nanced b domestic currenc deposits increased to 147.1% during the last quarter (up rom
143.2% at end-June 2011), which is 5.9% higher than a ear ago (when it stood at 138.9%).
Local currenc lending (loans, advances and mortgages) increased b 1.1% (or $55 million) when compared to the prior quarter.
year-on-ear, lending was up b 2.4% (or $122 million).
BD$ deposit liabilities decreased b almost 1.6%, and as such, savings deposits now refect 41.2% o total BD$ deposit liabilities.
2. dOMEstIC And FOREIGn CuRREnCy POsItIOn
Foreign Currency Position - Combined Banks and Deposit Companies (Consolidated)
Totals may not add due to rounding.
Net oreign currenc assets declined b 1.5% in the third quarter, but increased b 10.3% when compared to a ear earlier.
Similarl, net oreign currenc liabilities decreased b 0.7% during the quarter, but increased b 13.2% when compared to a ear
earlier. As a result, the net oreign currenc position continues to show a decit, which increased b $25 million to $120 million,
up 26.3% during the quarter. However, the decit decreased b 37.4% (or $108 million) when compared to a ear earlier.
(BD$ millions) 2011-Q3 2011-Q2 2011-Q1 2010-Q4 2010-Q3 2010-Q2
Total Foreign Currency Assets 18,334 18,606 17,324 17,693 16,616 16,861
Less: Other Assets 220 361 391 428 437 433
Less: Foreign Currency Loans to Residents 847 837 896 1,013 1,052 1,219
Net Foreign Currency Assets 17,267 17,408 16,036 16,251 15,127 15,209
Foreign Currency Liabilities 17,189 17,303 16,128 16,232 15,163 15,749
Add: BD$ Deposits o Non-Residents 198 200 194 185 192 195
Net Foreign Currency Liabilities 17,387 17,503 16,321 16,418 15,355 15,944
Net Foreign Currency Position (Consolidated) (120) (95) (285) (166) (228) (735)
8/3/2019 829-January 2012 Regulatory Update (FINAL)
11/20
09
1300
1250
1200
1150
1100
1050
1000
3. BERMUDA STOCK ExCHANGE (BSx)The total market capitalisation o the BSx as at 30th September 2011 (ecluding unds) was $303 billion, down b $54.4
billion during the quarter. This decrease in total market capitalisation was primaril due to changes in the trading values o
several large international companies. The domestic market capitalisation totaled $1.66 billion, up b just $10 million rom the
previous quarter. Total trading volume in the third quarter was 5,449,904 shares with a corresponding domestic market value
o $15,728,836.
INDEX
30th
Septe
mber20
10
29th
Octob
er20
10
26th
Nove
mber20
10
31stDe
cembe
r201
0
28th
Janua
ry20
11
25th
Febru
ary2011
31stMa
rch20
11
29th
April
2011
27th
May2
011
30th
June2
011
27th
July2
011
26th
Augu
st20
11
30th
Septe
mber20
11
Source: Bermuda Stock Exchange
8/3/2019 829-January 2012 Regulatory Update (FINAL)
12/20
10Regulatory Update January 2012
4. BANKING
Total assets within the banking sector declined b 0.9% (or $228.5 million) when compared to the prior quarter,
however, total assets still eceed the levels a ear earlier b $1.8 billion*. The sectors investment book rose b 0.6% (or
$39.5 million) while other assets ell b 13.3% (or $134.7 million) during the period.
Cash and deposits ell b 8.1% (or $650.5 million*) while the sectors loan book grew at a rate o 5.9% (or $517.1
million) during the quarter. The deposit base shrunk b 0.8% (or $163.1 million) when compared to the prior quarter,
though it was ahead b 10.2% (or $1.9 billion) in comparison to a ear earlier.
Shareholders equit or the sector declined b 2.3% (or $72.9 million) over the quarter.
Banking Sector Assets and Deposits
2011-Q3 2011-Q2 2011-Q1 2010-Q4 2010-Q3 2010-Q2
Total Assets ($ millions) 24,105 24,334 23,091 23,369 22,275 22,779
Quarterly Change (%) -0.9% 5.4% -1.2% 4.9% -2.2% 1.6%Total Deposits ($ millions) 20,531 20,694 19,531 19,631 18,632 19,124
Quarterly Change (%) -0.8% 6.0% -0.5% 5.4% -2.6% 3.6%
*Refer to Combined Balance Sheet of Bermuda Banks and Deposit Companies (consolidated) table.
8/3/2019 829-January 2012 Regulatory Update (FINAL)
13/20
11
Regulatory Capital to Risk Weighted AssetsThe banking sectors aggregate risk asset ratio improved during the quarter rom 21.9% to 23.2%. The corresponding
Tier 1 Risk Asset Ratio (RAR) also increased rom 23.4% to 25.0%.
The table below shows the movement in the over the last ve quarters:
0% 5% 10% 15% 20% 25% 30%
2010-Q3
2010-Q4
2011-Q1
2011-Q2
2011-Q3
25.6%
21.9%
25.0%
21.3%
23.2%
8/3/2019 829-January 2012 Regulatory Update (FINAL)
14/20
12Regulatory Update January 2012
Combined Balance Sheet o Bermuda Banks and Deposit Companies (Consolidated)
Total
856,6606,5938,693
549511
23,091
8,0504,8886,593
19,531
420
19,951
3,141
23,091
BD$
415236
5,085435120
5,768
8381,4931,249
3,580
244
3,823
2,016
5,839
Other*
456,6086,5573,608
114391
17,324
7,2133,3955,344
15,951
176
16,128
1,125
17,252
(BD$ millions)
AssetsCashDepositsInvestmentsLoans & AdvancesPremises & Equipment**Other Assets**
Total AssetsLiabilitiesDemand DepositsSavingsTime Deposits
Sub Total - Deposits
Other Liabilities
Sub Total - Liabilities
Equity & Subordinated Debt
Total Liabilities and Capital
Total
806,4336,2568,423
548536
22,275
7,2794,7926,561
18,632
432
19,064
3,211
22,275
BD$
405328
5,005434
99
5,659
8421,4341,367
3,644
257
3,901
2,065
5,966
Other*
396,3806,2283,418
113437
16,616
6,4373,3575,194
14,988
175
15,163
1,146
16,308
Total
916,6336,2408,730
542544
22,779
8,0364,5806,509
19,124
534
19,658
3,121
22,779
BD$
523944
5,244428111
5,919
8571,4331,369
3,660
249
3,909
2,105
6,013
Other*
386,5946,1963,486
114433
16,861
7,1783,1475,140
15,465
285
15,749
1,017
16,766
2010-Q4 2010-Q3 2010-Q2
(BD$ millions)
AssetsCashDepositsInvestmentsLoans & AdvancesPremises & Equipment**Other Assets**
Total AssetsLiabilitiesDemand DepositsSavingsTime DepositsSub Total - Deposits
Other Liabilities
Sub Total - Liabilities
Equity & Subordinated Debt
Total Liabilities and Capital
Total
907,9446,5358,749
524492
24,334
8,8875,3136,493
20,694
431
21,124
3,210
24,334
BD$
414236
5,067411131
5,728
8751,5001,193
3,568
253
3,822
2,055
5,876
Other*
497,9026,4993,682
113361
18,606
8,0123,8135,300
17,125
177
17,303
1,155
18,458
Total
747,3096,5759,266
528353
24,105
8,6485,1176,765
20,531
438
20,969
3,137
24,105
BD$
392649
5,124401133
5,771
8701,4741,170
3,514
266
3,780
2,063
5,843
Other*
367,2836,5264,143
127220
18,334
7,7793,6445,595
17,017
172
17,189
1,073
18,262
Total
887,2026,3868,631
540522
23,369
8,1274,8136,690
19,631
547
20,178
3,191
23,369
BD$
475737
5,02741593
5,676
8211,4421,335
3,599
347
3,946
2,109
6,055
Other*
417,1456,3503,604
125428
17,693
7,3063,3715,355
16,032
200
16,232
1,082
17,314
2011-Q3 2011-Q2 2011-Q1
* Other includes USD and other currencies.** Premises and Equipment and Other Assets have been restated to reclassiy
equipment and other xed assets that were previously recorded under Other Assets.
Totals may not add due to rounding.
8/3/2019 829-January 2012 Regulatory Update (FINAL)
15/20
13
5. InvEstMEnt Funds
The net asset value as at the end o Q3 was $160.44 billion, a decrease o 5.82% rom the $170.36 billion gure recorded at
the end o Q2.
In line with global trends, there was a broad-based decline in assets resulting rom Q3 perormance returns and net capital
outfows. The total number o unds was fat despite the negative environment, with 14 newl registered unds being
processed during the quarter.
2011-Q3 2011-Q2 2011-Q1 2010-Q4 2010-Q3 2010-Q2
Mutual Funds 613 616 650 657 656 661
Umbrella Funds 47 47 49 58 59 64
Sub-Funds 119 117 118 142 157 172
Segregated Account Companies 68 69 70 76 78 79
Segregated Accounts 209 212 245 248 215 229
Total 1,056 1,061 1,132 1,181 1,165 1,205
Unit Trusts 39 40 41 40 43 39
Umbrella Trusts 95 87 74 69 102 101
Sub-Trusts 155 154 150 150 166 175
Total 289 281 265 259 311 315
Total Portolios 1,345 1,342 1,397 1,440 1,476 1,520
Total Number o Funds 862 859 884 900 938 944
Total Net Asset Value (In billions) $160.44 $170.36 $171.97 $178.44 $175.59 $180.35
Note: The calculation of the Bermuda net asset value data has been revised and restated for 2010.
8/3/2019 829-January 2012 Regulatory Update (FINAL)
16/20
14Regulatory Update January 2012
6. INSURANCEDuring the third quarter o 2011, 11 new insurers and intermediaries were registered in the Bermuda market. This compares
to seven registrations or the same period the previous ear.
Insurance Company Registration Statistics1
2011-Q3 2011-Q2 2011-Q1 2010-Q4 2010-Q3 2010-Q2
Class 1 0 5 0 3 0 1
Class 2 2 0 0 1 0 2
Class 3 1 3 2 0 2 0
Class 3A 0 4 1 1 0 0
Class 3B 0 0 0 1 0 0
Class 4 0 0 0 2 0 0
Long-Term 1 0 1 0 2 3
SPI 4 8 2 3 0 3
Dual Licence 0 0 1 0 0 0
Intermediaries 3 2 1 2 3 2
Total Additions 11 22 8 13 7 11
Explanatory Notes:
Class1 Single-parentcaptiveinsuringtherisksofi tsownersorafliatesoftheowners. Class2 (a)amulti-ownercaptiveinsuringtherisksofitsownersorafliatesoftheowners;or
(b) a single parent or multi-owner captive: (i) insuring the risks arising out o the business or operations othe owners or aliates, and/or (ii) deriving up to 20 percent o its net premiums rom unrelated risks.
Class3 Captiveinsurersunderwritingmorethan20%andlessthan50%unrelatedbusiness.
Class3A Smallcommercialinsurerswhosepercentageofunrelatedbusinessrepresents50%ormoreofnetpremiumswritten or loss and loss expense provisions and where the unrelated business net premiums are less than $50million.
Class3B Largecommercialinsurerswhosepercentageofunrelatedbusinessrepresents50%ormoreofnetpremiumswritten or loss and loss expense provisions and where the unrelated business net premiums are more than$50 million.
Class4 Insurersandreinsurerscapitalisedataminimumof$100millionunderwritingdirectexcessliabilityand/orproperty catastrophe reinsurance risk.
Long-Term Insurerswritinglong-term(orlife)business.
SPI Aspecialpurpose,singletransactionorsinglecustomerinsurancecompanywhichassumes(re)insurancerisks,and which typically ully unds its exposure to such risks through the proceeds o a debt issuance or someother nancing mechanism, where the repayment rights o the providers o such debt or other nancingmechanism are subordinated to the (re)insurance obligations o that vehicle.
DualLicence Insurerswritingacombinationoflong-term(orlife)businessandClass1,2,3,3A,3Bor4business.
Intermediaries Insurancemanagers,insurancebrokers,insuranceagentsandinsurancesalesmen,asdenedinSection10ofthe Insurance Act 1978.
1 Eective Q1 2010, the presentation o this statistical data has been revised to provide details o those companies added to the Insurance Register during eachquarter, i.e. those that have been granted an insurance licence by the Bermuda Monetary Authority. Previously, statistics or company incorporations wereprovided in this publication. Company incorporations are completed by the Bermuda Registrar o Companies (ROC) ofce; statistics on insurance companyincorporations will now be available rom the ROC.
8/3/2019 829-January 2012 Regulatory Update (FINAL)
17/20
15
7. COMPANy AUTHORISATIONS
Companies, Partnerships and Permits Statistics - Applications Approved
2011-Q3 2011-Q2 2011-Q1 2010-Q4 2010-Q3 2010-Q2
Exempted Companies 238 236 226 256 188 183
(Bermuda companies exempted rom the 60%
Bermudian ownership requirement)
Exempted Partnerships 12 14 15 24 5 18
(partnerships established in Bermuda to carry on
business in or rom within Bermuda)
Overseas Partnerships 5 1 1 2 1 1
(overseas partnerships applying or permits to
carry on business in or rom within Bermuda)
Overseas Permit Companies 4 6 2 15 7 7
(overseas companies applying or permits to
carry on business in or rom within Bermuda)
Unit Trusts 6 15 5 2 6 8
Total Applications Approved* 265 272 249 299 207 217
The statistics shown above refect the number o applications that have received vetting clearance rom the Bermuda
Monetary Authority. These gures do not refect the actual number o entities incorporated in Bermuda during the
period. Such statistics can be obtained rom the Registrar o Companies.
* Quarterly Numbers are amended to refect more up-to-date consent inormation.
8/3/2019 829-January 2012 Regulatory Update (FINAL)
18/20
Regulatory Update January 2012
8/3/2019 829-January 2012 Regulatory Update (FINAL)
19/20
8/3/2019 829-January 2012 Regulatory Update (FINAL)
20/20
BERMUDA MONETARY AUTHORITY
BMA Housen43 Victoria Street nHamilton HM 12 Bermuda
P.O. Box HM 2447 nHamilton HM JX Bermuda
tel: (441) 295 5278 nax: (441) 292 7471
email: [email protected] nwebsite: www.bma.bm