Bermuda-incorporated entities B listing

Since 11/23/1990. World headquarters in Bermuda since 1972. Pitt's Bay Road, Pembroke. P. O. Box HM 720, Hamilton HM CX. Phone 298-1060. Fax 296-2468. World's largest rum maker and privately held spirits company. Founded in Cuba in 1862 by Don Facundo Bacardi y Maso. It prospered for years with its secret rum recipe. After the Spanish-American War of 1898, Bacardi gave the world the Cuba Libre and the Daiquiri. But Fidel Castro took control in 1959, not long afterwards seized and nationalized the plant, rum distilleries and assets without any compensation. The US initially recognised Mr Castro's revolutionary government, but broke off diplomatic relations in 1961. The founder's descendents, the Bacardi family, exiled themselves in the USA initially and began afresh. The Bermuda building, Bacardi's iconic world headquarters as seen above, was designed by Mies van der Rohe. Major businesses are Bacardi International Limited and Bacardi Capital Limited. Between them, they oversee the worldwide (outside USA) marketing of much of the group's international financial affairs and bulk transportation.  They also market Martini and Rossi vermouth; Asti sparkling wine - which they bought in 1993; Bombay Sapphire Gin from England, Dewars Whisky from Scotland  and New Zealand vodka and gin producer 42 Below. The private Bacardi companies do not disclose financial results. There is also a large office in Miami, Florida. In 2007, Rising demand for deluxe scotch whisky in China, Taiwan, Korea and other Asian countries prompted Bacardi to invest more than $250 million over 10 years  to expand production of its Dewar's brand in Scotland. The Dewar's brand of whisky includes 12-year, 15-year and 18-year maturities. Dewar's is the number one selling blended scotch in the US. Employs more than 6,000 people, operating 27 manufacturing facilities in 16 countries on four continents, and selling in more than 100 markets globally. Bacardi employs 65 people in Bermuda. In December 2014 Barack Obama signaled a change of direction, which was greeted with jubilation in Cuba. But Bacardi greeted the development with caution. In response to questions from The Royal Gazette, Bacardi said it was proud of its Cuban roots. "We have the utmost respect and sympathy for the Cuban people with whom we share a common heritage," Bacardi added. "Regarding the diplomatic actions yesterday, we will need to wait and see what the impacts are. We hope for meaningful improvements in the lives of the Cuban people and will follow any changes with great interest. In the meantime, we continue to support the restoration of fundamental human rights in Cuba." It did not directly address the question of whether the US move could at some point result in a move of its headquarters back to Cuba. However, in an interview with Cigar Aficionado published in mid 2014, Bacardi chairman Facundo Bacardi made the company's feelings about Cuba very clear. Asked by the publication what would happen if the US trade embargo on Cuba were dropped, Mr Bacardi said: "The vision of the family and the company is to come full circle. We will be back in Cuba, and we will invest beyond what it will take just to build the brand. We see Cuba as our home. I would say about half our family members were born in Cuba. We left before the revolution, and we have every intention of going back, rebuilding our business and helping the Cuban people."

2020. January 28. Global drinks giant Bacardi is to recruit thousands of new “workers” at its Bermuda HQ — and they will all be as busy as ... bees. For the firm has set up eight beehives at the side of its landmark offices in Hamilton with beekeepers Wild Island Farms as part of a worldwide effort to protect the environment and increase the numbers of under-threat honeybees. The beehive drive was launched with Bacardi’s single malt Aberfeldy under the slogan “Barrels and Bees”, a nod to the honeyed flavour of the whisky and the gold deposits in Pitilie Burn — the Scots word for stream — in Perthshire, Scotland, where the distillery draws the pure water used in production of the country’s national drink. Gabriel Urrutia, the Aberfeldy brand ambassador in the US, said that the company would promote natural honey as part of its whisky cocktails and beehives had already been set up at its US headquarters in Florida and more would be installed around Bacardi’s international network of offices. Aleco Azqueta, the Aberfeldy brand director in the US, added: “This is a part of our sustainability platform for Aberfeldy and for us to raise awareness of the impact bees make on our ecosystem and also being able to educate bartenders on the importance of using natural honey instead of artificial sweeteners or synthetic honeys.” He said: “We plan to roll out the initiative globally — that’s hundreds of sites — and honey is a natural complement to Aberfeldy because it has very honeyed notes in the malt.” He was speaking after Pipe Major Aidan Stone of the Bermuda Islands Pipe Band. led Bacardi executives and guests for a roof-wetting ceremony of the new hives at the side of the Pitts Bay Road offices last Friday. Douglas Mello, managing director of Bacardi’s Bermuda office, said: “The installation of beehives by Aberfeldy at our global headquarters is one of the many ways we give back to the environment and help drive greater awareness of the role we can each play in protecting wildlife and natural resources.” Kristin Heyliger, of Wild Island Farms, said: “We have a few corporate contracts, like the Fairmont Southampton — everybody wants to do their part.” The number of honeybees have been in decline around the world for 100 years and wild bees have experienced the sharpest drop. But Ms Heyliger said Bermuda’s honeybee population, devastated in 2009 by the killer varroa mite, had started to recover. The use of some kinds of pesticides has also been blamed for a global decline in the honeybee population. Bees are vital to agricultural production through pollination and Mr Urrutia told the audience at the unveiling of the hives that it was estimated that without them, the human population would die off in about four years. Georgie Bell, Bacardi’s global Aberfeldy ambassador, said: “The global Aberfeldy Barrels and Bees platform educates people about the plight of bees and the state of our wildlife, while advocating provenance and the use of quality ingredients that don’t cost the earth.” Ms Bell added: “We as a community need to help by supporting our local, urban beekeepers by planting for honeybees and buying local. It all has a knock-on effect.” Bees will be introduced to the Bacardi hives in March, but the firm provided a glass-sided hive at the launch so guests could see the bees at work on honey production. Walter Roban, the home affairs minister, whose responsibilities include the environment, told the gathering he had set up as a beekeeper “on a small level”. Mr Roban said that Bacardi was “truly one of the original international businesses” in Bermuda and had made a major contribution to island society. He added: “Honey is a part of the environment that’s very important and we all know that bees are crucial to the survival of human existence.”

2019. November 18. Bermuda-based Bacardi Ltd says it has acquired substantially all of the assets of Stillhouse, a US-based industry disrupter. 

Bacardi, the largest privately-held spirits company in the world, made an initial investment in Stillhouse in 2014 and has provided additional funding and strategic support to the company over the years. This acquisition brings the brand fully into the Bacardi portfolio. The brand will be under the leadership of Pete Carr, President of Bacardi North America. Brad Beckerman, Stillhouse’s founder and chief executive officer, will step away from the business to pursue other opportunities. Bacardi said: “We are pleased to have come to a mutual agreement as we have always admired the Stillhouse brand for its innovation, disruption of categories, and marketing ingenuity. We believe in the brand’s growth potential and are excited to continue the pioneering vision that the founder set for Stillhouse.” Mr Beckerman said: “I am proud that my vision for Stillhouse will be taken to the next level by industry leader Bacardi.” Mr Beckerman has dismissed a prior lawsuit he brought against Bacardi and other parties, and no payment, settlement or concession of any kind was made by Bacardi or any other party. The acquisition was consummated on the same terms proposed by Bacardi prior to the commencement of the litigation, Bacardi said. Stillhouse is known for its American-made spirits and stainless steel cans.

2019. March 27. Dave Wilson, global president and chief operating officer of Patrón Spirits International and The Patrón Spirits Company, retires on Monday, a year after the merger with Bermuda-based Bacardí Ltd. Pete Carr, president, Bacardí North America, will take over from him, leading both Bacardí and Patrón for North America. Mr Wilson will continue as a senior advisor to Patrón. A Bacardí spokesman said the company was now well into a successful integration of Patrón, which joins a portfolio that includes Bacardí rum, Grey Goose vodka, Bombay Sapphire gin, Dewar’s Blended Scotch whisky and Martini vermouth and sparkling wine. “During his tremendously successful 40-year career, Dave has made an everlasting imprint in the spirits industry driving pioneering marketing, world-class operations, and innovative environmental programmes,” Mahesh Madhavan, CEO of Bacardí, said. "On behalf of Bacardí and our newest colleagues from Patrón, I thank Dave for his contributions to the industry and for supporting the union of two incredible organisations that are Bacardí and Patrón.” As part of the new structure, Darren Doalson, senior vice-president of US sales for Patrón Spirits, now reports to Mr Carr. David Rodriguez, director general of Patrón Sprits manufacturing operations in Mexico, reports to Jean-Marc Lambert, vice-president of global operations for Bacardí. Lee Applbaum will continue to manage US and global marketing for Patrón Tequila and Grey Goose vodka, reporting to Mr Madhavan. Other functions which formerly reported to Mr Wilson at Patrón have already successfully integrated into the Bacardí organisation.

2019. March 6. Bacardí supports the right to seek justice for those whose properties were confiscated in Cuba by the Fidel Castro regime almost 60 years ago. The Bermuda-based company was commenting in the wake of the United States’ opening of a very limited scope for lawsuits against Cuban companies benefiting from properties seized after the Caribbean country’s 1959 revolution. The family-owned global drinks giant moved to Bermuda in 1965, after Cuba’s communist government confiscated the company’s private assets in October 1960. US President Donald Trump’s administration this week opened the door to a limited number of legal actions under a section of Title III of the Helms-Burton Act. Title III allows for protection of property rights in Cuba, creating the opportunity to sue those who “traffick” confiscated property, such as hotel owners using sites that were seized decades earlier. Bacardí told The Royal Gazette : “Bacardí, like many others, is a company that lost all of its Cuban properties to illegal confiscation without compensation. We support the right and ability of those impacted to seek justice and to prevent further trafficking in stolen properties.” Successive US presidents have suspended Title III for successive six-month periods, given the potential for complex and expensive legal actions against many global businesses and the potential for subsequent trade disputes with the US. Major investors in Cuba include British tobacco giant Imperial Brands, which runs a joint venture with the Cuban government making premium cigars; Spanish hoteliers Iberostar and Melia, which run dozens of hotels across the island; and French beverage-maker Pernod-Ricard, which makes Havana Club rum with a Cuban state distiller. Bacardí has battled with Pernod-Ricard in the US courts for years over who owns the right to the Havana Club name. While this week’s loosening of the suspension limits lawsuits under Title III to a list of about 200 Cuban businesses and government agencies that are already subject to special US sanctions because they are tied to the Cuban military and intelligence ministries, there are signs that firmer action could be on the way. The Trump administration said its latest Title III suspension would expire after 30 days, while most previous suspensions have lasted six months. The action is being presented as retaliation for Cuba’s support of Nicolas Maduro, the president of Venezuela, whom the US is trying to oust in favour of opposition leader Juan Guaido. On Twitter, US senator Marco Rubio wrote: “Today, expect the United States to take the first in a series of steps to hold the regime in #Cuba accountable for its 60 years of crimes & illegality which includes its support for the murderous #MaduroCrimeFamily. Justice is coming. And more to come.” The US has maintained a six-decade trade embargo on Cuba. Bacardí was founded in Santiago de Cuba in 1862. Mahesh Madhavan, Bacardí’s CEO, told The Royal Gazette last month, that he hoped Bacardí’s global headquarters would remain in Bermuda for the next “500 years” and that “Bermuda is our home now”.

2019. February 12. Drinks giant Bacardi is on the rock for good, its chief executive has promised. Mahesh Madhavan said that the Cuban-founded company was committed to Bermuda as its global headquarters. Mr Madhavan added: “We have completed 157 years of the company — not only another 157 years but the next 500, I hope, will be in Bermuda.” He was speaking as dozens of Bacardi staff on the island completed their annual “back to the bar” event, designed to coincide with the founder’s day at the family-owned firm, at Docksider in Hamilton. Bacardi set up in Bermuda in 1965 after it was forced out of Cuba by the Communist regime set up in the wake of the 1959 revolution headed by the late Fidel Castro. There are signs that the grip of Communism is loosening on the Caribbean island and that the US trade embargo imposed after the revolution has since been relaxed, leading to hopes that exiles may be able to return. But Mr Madhavan said: “For us, Bermuda is home, irrespective of what happens there. We might go there and build a connection, but Bermuda is our home now.” He added: “Bermuda is the place we make all our decisions. The board meets here six times a year and we have a leadership team coming here seven times a year. Bermuda is the hub for all major decisions to be made.” Mr Madhavan said uncertainty caused by Britain’s decision to quit the European and the French social justice “yellow vests” protests, which descended into violence, had hit business in Europe towards the end of last year. He added: “Consumers don’t know whether they should spend or save for a rainy day and that results in them going to cheaper brands.” But he explained that downturns were “cyclical” and affected different parts of the world at different times. The year was good. We are on track with budgets ... we’re on track to deliver what we told the family and board of directors we would deliver.” Mr Madhavan and John Burke, the chief marketing officer and president of Bacardi Global Brands, joined other staff for the tour round 12 bars in Hamilton last Thursday night in a drive designed to promote Bacardi — and get ideas from bar owners and customers on how to develop its brands. More than 7,000 Bacardi staff in 134 cities around the world took part in the event, Mr Burke said: “It’s fantastic to meet real people who are trying our brands and we’re able to talk to them about our brands. We invite our teams to go out into bars and meet people, talk to them about our products and our brands and learn more about our consumers because we’re on a mission to put the customer at the heart of what we do. For us, it’s market research because the people who work in bars are telling us what the customers have told them. That helps us better serve our customers.” Mr Madhavan said: “At times, we get ideas too ... sometimes the best advice comes from our customers. There’s definitely been a bit of a buzz. The fact we had it on radio, we had people talking about it and people were looking forward to it. It was a great way to get people out of their homes. It all boils down to connecting — that’s what Bacardi has always been great at. It’s a reboot. Getting people back to bars and socializing.” The company’s portfolio includes more than 200 brands — and not just rum, but English gin, Italian vermouth, Scotch whisky, French vodka, Mexican tequila and one of its newest acquisitions — a stake in Teeling, an Irish whiskey distiller based in the heart of Dublin. Mr Madhavan said: “People don’t realize the company has all these brands — it’s good to get out and tell them about them.”

2018. October 1. Carlos “Lindy” Bosch, a former president of Bacardi International, has died. Mr Bosch was 91. Mr Bosch, a member of the Bacardi family, was instrumental in the relocation of the Cuban-born drinks dynasty to a new home in Bermuda in 1965. Bacardi, founded in Cuba in 1862, was forced from its homeland in the wake of the Cuban revolution of 1959 after its leader, Fidel Castro, introduced a hardline Communist regime and nationalized private property without compensation. Mr Bosch moved to Florida with his family and persuaded his father, José “Pepín” Bosch, the grandson-in-law of Bacardi founder Don Facundo Bacardí Massó and then president of the company, to set up in Bermuda. Mr Bosch told The Royal Gazette at the 50th anniversary of Bacardi in Bermuda in 2015 that it took two years to convince his father to move the company to the island. He added: “Somehow or other, the small team we had gelled and it just worked.” The original staff of five grew to 65 over five decades and Bacardi’s modernist global headquarters on Pitts Bay Road, originally designed by world-renowned Mies van der Rohe for construction in Cuba, became a landmark. Mr Bosch retired in 1975. A requiem mass for Mr Bosch, a father of four, will be held at 2pm tomorrow at St Theresa’s Cathedral, Cedar Avenue, Hamilton.

2018. September 24. Bermuda-based drinks giant Bacardi has brought more jobs to Bermuda as the firm expands its portfolio, the company’s regional president for Latin America and the Caribbean said. Ignacio del Valle, in Bermuda to help launch two new premium rums, said Mahesh Madhavan, appointed chief executive officer of family-owned Bacardi last October, had already made changes. Mr del Valle, a sixth-generation member of the Bacardi family, said: “He has brought more jobs to Bermuda and senior executives to Bermuda. I visit Bermuda myself every month-and-a-half and the global leadership meets here every 40 to 45 days.” He was speaking as Bacardi teamed up with island drinks distributor Burrows Lightbourn to introduced Anejo 4 and Gran Reserva 10 premium rums to Bermuda as part of the firm’s “True Aged Rum” range at the Pickled Onion in Hamilton last Tuesday. Bacardi employs more than 70 people at its global headquarters on Pitts Bay Road. Mr del Valle added that the firm, forced to flee its original home in Cuba after a 1959 revolution propelled Fidel Castro and a hardline Communist regime to power, remained committed to Bermuda as its world headquarters. He said: “Cuba is where our roots are since 1862. The Bacardi name was born there and we have been in Bermuda since the 1960s. We plan to continue being in Bermuda and calling it our home for many years to come.” The firm has grown from its original base in rum to take in other spirits, including Scotch whisky, vermouth, gin, as well as the premium vodka Grey Goose. Bacardi also acquired Patron, the world’s top-selling upmarket tequila brand, in a $5.1 billion deal in April this year. Mr del Valle said: “Bacardi has just taken on the most important tequila brand in the world, so that’s another demonstration of the size of the company and how the owners and management feel about the future of the company. Bermuda has been a great home for us — many of the family have lived in Bermuda and there is no reason for us not to consider Bermuda our home. We’re very grateful to Bermuda.” Mr del Valle added that last year’s Hurricane Maria had devastated Puerto Rico in the Caribbean, where the company makes most of its rum, and affected production and distribution. But he said the company’s distillery plant, although roofs were blown off and walls damaged at warehouses, had escaped the worst of the damage. Mr del Valle added: “Hurricane Maria affected Puerto Rico in a very material and significant way. We suffered cosmetic damage — we lost a lot of trees and we lost our power, but the storm did not affect our barrels and our ageing facilities which are the jewels.” And he said: “We were the first company in Puerto Rico to resume exports after the storm.” He added the company had pitched in to help Puerto Ricans and set up “stop-and-go” aid centres manned by staff from the Casa Bacardi visitor centre, which offered charging stations for mobile devices, children’s play areas, medical services and meals. Casa Bacardi, the second most-visited venue in Puerto Rico, features the history of Bacardi, a bar inspired by the company’s bat logo and tours of the production plant. Mr del Valle said: “We might have traveling versions of Casa Bacardi and that could travel to Bermuda.”

2018. April 30. Bermuda-based Bacardi Ltd has acquired Patrón Spirits International, maker of a well-known tequila brand Patron. The deal, which was first announced three months ago, closed today. The two companies have enjoyed a successful working relationship, since Bacardi acquired a 30 per cent stake in Patrón in 2008. According to the most recent International Wines and Spirits Record data, the acquisition makes Bacardi the number one spirits company in the super-premium segment in the US and the second largest in market share by value in the US tequila market. Tequila is one of the fastest-growing categories in the spirits industry, with Patrón the clear market leader in the super-premium segment. “We are delighted to welcome the team from Patrón into the Bacardi family,” Mahesh Madhavan, chief executive officer of Bacardi, said. “We continue to be inspired by their passion, culture of caring, attention to detail, and unwavering commitment to quality. Our promise is to uphold these qualities to ensure the product integrity, innovative marketing, and commercial success of Patrón tequila for years to come.” Edward Brown, Patrón Spirits CEO, said: “With Bacardi and its global presence, there is vast potential to grow the Patrón brand outside the US, which is particularly exciting. Patrón has been a personal passion of mine for nearly 20 years, and I am thrilled to now be a part of the Bacardi family.”

2017. October 2. Mahesh Madhavan has taken over from Michael Dolan as chief executive officer of Bacardi. The spirits giant, which has headquarters on Pitts Bay Road, had first announced the planned transition in March. Mr Dolan has retired after holding the CEO’s role since 2014. “With more than 20 years at Bacardi, in different roles in different geographies, Mahesh has a tremendous track record of success,” Facundo Bacardi, chairman of the family-owned business said today. “He inherits a business that is in great shape, with a healthy balance sheet, revitalized brands, and an engaged team of employees. Mike and Mahesh have worked closely to carry out the succession smoothly, and the board is delighted with the progress they achieved.” In his career with Bacardi, Mr Madhavan has led the company’s Europe, Asia, Middle East and Africa operations. He has also held leading roles in various fast-growing emerging markets including managing director of India, managing director for Thailand and the Philippines, and managing director of South Asia and Southeast Asia. He has also led the company’s Emerging Market Council. As part of this leadership succession plan, Mr Madhavan announces the internal appointments of two senior leaders. Effective immediately, John Burke, 51, becomes global chief marketing officer of Bacardi and president of Bacardi Global Brands Ltd, while Ignacio del Valle, 47, leads commercial operations for the Latin America and Caribbean region as its regional president. Mr Burke and Mr del Valle serve as members of the Bacardi Global Leadership Team and report directly to Mr Madhavan. Mr Burke will be based between the Bacardi global headquarters in Bermuda, subject to Bermuda immigration approval, and Bacardi Global Brands Ltd’s London office. “These internal appointments showcase our deep bench of seasoned talent and leadership within Bacardi and further demonstrates the company’s dedication to nurturing and growing our talented leaders,” Mr Madhavan said.

2016. December 30. A decades-long rum war between the Communist Cuban government and Bermuda-based drinks giant Bacardi is to feature on a top US TV news show. CBS current affairs flagship 60 Minutes will on Sunday examine the fight for control of the Havana Club brand name — which has been running since Fidel Castro seized power in Cuba in 1959 — in a segment called “The Rum War”. The show’s Sharyn Alfonsi visited Cuba to examine the roots of the row, which is still the subject of long-running legal battles in the US. In a trailer for the segment, Ms Alfonsi said: “It’s complicated — you need to pull up a seat and make yourself comfortable to try and figure it out.” The Havana Club trademark originally belonged to Cuban rum-makers Jose Arechabala, whose family company was seized and nationalized after the revolution that deposed hated dictator Fulgencio Batista. The family left Cuba, stopped producing rum and allowed the US trade mark to lapse in 1973. The Cuban government registered the trade mark in the US in 1976 and assigned it to French partners Pernod-Ricard in 1993. Since 1994, Havana Club has been sold around the world, but not in the US. Bacardi, however, obtained the Arechabala family’s remaining rights to the brand in 1994 and began selling limited amounts of Havana Club in the US, which sparked a legal battle with Pernod Ricard, which was successful in two of the first three court decisions in the matter. After further legal battles, the Cuban government’s US trademark registration expired in 2006 — but in January, amid a thaw in relations between the US and Cuba, the American government gave Cuba rights to the Havana Club name, a decision Bacardi insists should be reversed. Bacardi also mounted a major marketing campaign for its version of the brand and maintains that the renewal for Cuba breaches a 1998 Act of the US Congress designed to protect trademarks taken over in the wake of the country’s revolution. The Bacardi Havana Club, made in Puerto Rico, includes a new bottle and packaging and the introduction of a dark rum variant, Havana Club Anejo Clasico, launched in Florida in the summer. The brand was launched with a new campaign “The Golden Age, Aged Well” and, in a sideswipe at Cuba, still Communist and now led by Fidel Castro’s brother Raoul, “Even A Revolution Couldn’t Topple the Rum”. A spokeswoman for Bacardi yesterday confirmed that representatives of the Bacardi and Arechabala families had been interviewed for 60 Minutes. She added: “Bacardi is the legitimate owner of the brand. No company or government should be able to profit from stolen property.” The Bacardi family, whose distillery company was founded in Santiago de Cuba in 1862, were also forced to flee Cuba after their assets were also seized and nationalized without compensation. The company set up its world headquarters in Bermuda a few years later and has become the largest privately held and family owned spirits company in the world. The 60 Minutes investigation will air on Sunday night. The show starts at 8.30pm Bermuda time.

2016. November 29. Bacardi Limited has appointed KC Kavanagh as its new global chief communications officer. She joins Bacardi from Starwood Hotels and Resorts Worldwide, where she worked for 18 years and led the company’s global communications. Ms Kavanagh will be based at Bacardi’s headquarters on Pitts Bay Road. She succeeds Jim Gallagher, who has decided to step down from the position at the end of the year. As a senior vice-president. Ms Kavanagh will report to Mike Dolan, chief executive officer of Bacardi Limited, and work closely with him, and chairman Facundo Bacardi, to develop “strategic internal and external corporate communications to support the family-owned company’s efforts to drive growth globally”, the company said in a statement. She is to collaborate with the company’s brand marketing teams to develop integrated public relations campaigns, social media strategies and content marketing programmes for the portfolio of iconic brands. “We are delighted to welcome KC to the Bacardi team,” said Mr Dolan. “Her significant corporate and global experience, coupled with her success in launching and nurturing luxury, lifestyle and next generation brands, dovetails perfectly with our efforts to innovatively market our brands and cultivate meaningful relationships with our consumers around the globe.” While working at Starwood, Ms Kavanagh led global communications for the company and its 11 brands, including Sheraton, Westin, St Regis and W Hotels. She was also a member of the company’s deal and integration team during Starwood’s merger with Marriott International. Prior to Starwood, she oversaw public relations for Hyatt Hotels Corporation. Ms Kavanagh said: “I am honored to join a company with such vibrant brands, tremendous global breadth and a storied family history that has inspired a culture of entrepreneurship and pride. I look forward to working with our team to creatively bring our stories and lore to life across many dynamic platforms.”

2016. June 2. Drinks giant Bacardi has launched a fresh salvo in a rum war with Cuba. For Bacardi is to mount a major marketing push for its Havana Club brand — a trademark whose ownership is disputed with the Communist regime in Cuba. The trademark originally belonged to Cuban rum-makers Jose Arechabala, whose family company was seized and nationalized after the Fidel Castro-led revolution in 1959. The family left Cuba, stopped producing rum and allowed the US trademark to lapse in 1973. The Cuban government registered the trademark in the US in 1976 and it was assigned to French partners Pernod-Ricard in 1993. Since 1994, Cuban Havana Club has been sold around the world — but not in the US. Bermudian-based Bacardi obtained the Arechabala family’s remaining rights in the brand in 1994 and began selling limited amounts of Havana Club in the US, which sparked a legal battle with Pernod Ricard, which was successful in two of the first three court decisions in the matter. After further legal battles, the Cuban government’s US trademark registration expired in 2006. But in January, the US government gave the Cuban government rights to the Havana Club name — a decision Bacardi insists should be reversed. Fabio Di Giammarco, the global vice president of rums at Bacardi, said: “This is the ultimate convergence of two Cuban families in exile coming together to continue the legacy of this incredible brand and introduce it to a new generation.” He added: “It is an honour that the Arechabala family has entrusted us to continue their family’s legacy and have no doubt that we’ll be able to bring to life all the things that make it a legendary brand.” Bacardi maintains that the renewal breaches a 1998 Act of the US Congress designed to protect trademarks taken over by Cuba after the revolution which deposed dictator Fulgencio Batista. The company told a US House of Representatives committee in February that the approval had been granted by the US Patent and Trademark Office after “years of inactivity” within 48 hours. The Havana Club national launch by Bacardi, which includes new bottle packaging and the introduction of a dark rum variant, Havana Club Anejo Clasico, which was launched in Florida yesterday. The rum will be introduced across the country over the summer. Jose Arechabala, great-grandson of the brand’s founder, said: “Our family could not be happier that Bacardi is launching Havana Club Anejo Clasico, which is based on the original recipe created by the Arechabala family in 1934 and made in Puerto Rico, to be sold alongside the existing Havana Club Anejo Blanco. “Our families knew each other before we were both exiled from Cuba and with Bacardi being the premier rum company in the world, it’s only fitting that they continue our legacy by paying proper homage to the capital city of Cuba, a place we once called home.” The brand will be launched with a new campaign “The Golden Age, Aged Well”, which evokes the glamour of pre-revolution Cuba, and includes the slogan “Even A Revolution Couldn’t Topple the Rum”.

2017. October 26. Butterfield Bank will have a presence in two new jurisdictions next year when it completes its planned acquisition of Deutsche Bank’s Global Trust Solutions business. Of particular note is the expansion opportunity into Singapore. Asia is viewed as a growth market for the bank. “Having a platform in Singapore will allow us to grow,” said Michael Collins, the bank’s chairman and CEO. During an earnings conference call only hours after the planned acquisition was announced yesterday, he said: “Singapore is obviously a market we have wanted to get into for a long time. And it goes back historically to our trust business from a lot of the Hong Kong families. So having a presence there is really important.” Butterfield has entered into an agreement to acquire GTS, excluding its US operations, from Deutsche Bank, presently in the process of being merged with a Cologne-based entity. Upon completion of the transaction, which is subject to regulatory approvals, Butterfield will take over the ongoing management and administration of the GTS portfolio, comprising of approximately 1,000 trust structures for some 900 private clients. The bank is offering positions to about 90 employees who are fully dedicated to GTS in the Cayman Islands, Guernsey, Switzerland, Singapore and Mauritius. While the terms of the agreement have not been disclosed, there are some clues about the scale of the deal. Mr Collins said the purchase price is under $50 million, and the new trust business was about 20 to 25 per cent the size of the bank’s existing trust business. At the end of September, Butterfield Trust had assets under management of approximately $95.2 billion. The Singapore platform that Butterfield will acquire is understood to have about 15 staff, and will generate about 20 per cent of the additional trust business revenue. Butterfield will partner with Deutsche Bank to provide trust solutions to German bank’s clients on an ongoing basis. In a statement, Mr Collins, said: “Trust is a core business for us, and the acquisition of the Deutsche Bank Global Trust Solutions business enables us to add scale and professional bench strength to our trust operations in Switzerland, Guernsey and Cayman. It also provides us with a physical presence in Asia, which we view as a growth market for Butterfield. We look forward to welcoming GTS clients and staff to Butterfield and to the development of new business from an ongoing partnership with Deutsche Bank’s wealth management team.” Deutsche Bank, which is headquartered in Frankfurt, is one of the world’s largest banks by total assets. Its wealth management business is also one of the largest in the world, with client assets of around €299 billion. Referring to the announced acquisition, Fabrizio Campelli, Deutsche Bank’s global head of wealth management, said: “Butterfield is a well-known leader in the trust industry and we look forward to working with them to provide our clients with a broader product offering. The divestiture represents an important step in our strategy of simplifying our business and positioning wealth management for growth in our core markets.” Outside Bermuda, Butterfield has operations in Cayman Islands, The Bahamas, Britain, Guernsey and Switzerland. Mr Collins said the acquisition of GTS ticked a number of boxes for the bank, such as being at least two-thirds private trust business. “We are less interested in, or not interested in, fund administration and company secretarial works and that sort of stuff. This is obviously 100-per cent private trust,” he explained during a question and answer portion of yesterday’s conference call. "It was important for the locations to be in the bank’s existing jurisdictions where it has scale — which is the case with GTS, with the exception of Singapore and Mauritius. We expect it to generate stable trust fee income for the bank and be accretive once integrated.” It is the fourth significant acquisition for the bank since 2014. The transaction is expected to close in the first half of 2018, subject to customary closing conditions.

2017. October 25. Butterfield Bank has reported a profit of $41.1 million for the third quarter, up $5 million on the previous three months. The results were released this morning, along with news that the bank is to acquire Global Trust Solutions from Deutsche Bank. While Butterfield’s net income for the quarter was $41.1 million, core net income was $40.7 million, or 73 cents per share, up $3.2 million on the previous quarter. In the same quarter last year, Butterfield’s core net income was $33.4 million, or 60 cents per share. Michael Collins, chairman and CEO of Butterfield Bank, said: “Butterfield delivered solid results this quarter as lending margins improved and expenses began to return to a more normal level. We are also pleased to announce an agreement to acquire the Global Trust Solutions business from Deutsche Bank. This acquisition will add scale and talent to our existing trust operations in Switzerland, Guernsey and Cayman and add a profitable and strategically important private trust platform in Singapore. We expect it to generate stable trust fee income for the Bank and be accretive once integrated.” The agreement to acquire Deutsche Bank’s Global Trust Solutions business, excludes its US operations. Terms of the agreement have not been disclosed. Upon completion of the transaction, which is subject to regulatory approvals, Butterfield will take over the ongoing management and administration of the GTS portfolio, comprising approximately 1,000 trust structures for some 900 private clients. With client assets of around 299 billion euros, Deutsche Bank’s wealth management business is one of the largest wealth managers worldwide. Butterfield is offering positions to all employees who are “fully dedicated to GTS in the Cayman Islands, Guernsey, Switzerland, Singapore and Mauritius”. And in a statement, Butterfield said it will partner with Deutsche Bank to provide trust solutions to Deutsche Bank’s clients on an ongoing basis. The acquisition is expected to close in the first half of 2018. Mr Collins said it was the fourth significant acquisition for the bank since 2014 and was consistent with the strategy to grow by acquiring complementary businesses in select jurisdictions. Announcing its third quarter results, the bank has declared an interim dividend of 32 cents per share to be paid on November 27. Butterfield’s improved profit was attributed to a number of factors, including a $2.8 million increase in net interest income before provision for credit losses, principally from interest earned on loans from slightly increased volumes and a full quarter’s impact of repricing. There was a $1.2 million decrease in provisions for credit losses, and a $500,000 decrease in non-interest income. Marketing costs fell by $1.5 million, due principally to a decrease in America’s Cup-related marketing initiatives. There was also a $1 million decrease in the remaining non-interest expense items, due to lower America’s Cup-related premises improvement costs, a decrease in restructuring costs and lower board of directors-related expenses. The bank reported a $800,000 increase in professional and outside services costs, due principally to $1.1 million of noncore expenses associated with potential acquisitions. Butterfield’s total assets were $10.6 billion at the end of September 2017, down $500 million from December 31, 2016. The loan portfolio totaled $3.7 billion at the end of the quarter, approximately flat from year-end 2016. The bank said paydowns in commercial lending were offset by new residential mortgages loans. Allowance for credit losses at totaled $42 million, a decrease of $2.3 million from the end of 2016. Butterfield’s return on average assets for the third quarter was 1.5 per cent, up from 1.3 per cent in the second quarter and 0.9 per cent in the third quarter of 2016. The core return on average tangible common equity was 22.2 per cent, up from 21.6 per cent in the previous quarter and 19 per cent a year ago. in the third quarter of 2016. Meanwhile, the core efficiency ratio for the third quarter of was 62.8 per cent compared with 66.1 per cent in the previous quarter and 65.3 per cent in the third quarter of 2016. Net interest income for the third quarter was $74.3 million, up $2.8 million on the previous three months, and $9.3 million higher, year-on-year. The bank said improvements were driven by higher yields on the investment portfolio and on the adjustable-rate loan portfolio. Net interest margin was 2.81 per cent, up 15 basis points from 2.66 per cent in the previous quarter and 42 basis points higher than the 2.39 per cent in the third quarter of 2016. Improvements were said to have been driven by increases in net interest income and deposit costs which decreased slightly to 10 basis points from 11 basis points in the previous quarter. Results for the third quarter included a release of provision for credit losses of $0.7 million compared with a provision for credit losses of $0.5 million in the previous quarter and a provision for credit losses of $0.3 million a year ago. Non-interest income was $38.2 million, compared with $38.7 million in the previous quarter and $36.3 million in the third quarter of 2016. Non-interest expenses were $73.6 million, compared with $75.3 million in the previous quarter and $77.3 million in the third quarter of 2016. The bank stated that non-interest expenses are expected to continue to normalize over the next quarter as various temporary expenses abate. Butterfield’s total capital ratio as at 30 September was 19.9 per cent as calculated under Basel III. This compares with 17.6 per cent as of December 31. Both of these ratios are significantly above regulatory requirements.

2017. October 25. Butterfield Bank has entered into an agreement to acquire Deutsche Bank’s Global Trust Solutions business, excluding its US operations, it announced this morning. Terms of the agreement have not been disclosed. Upon completion of the transaction, which is subject to regulatory approvals, Butterfield will take over the ongoing management and administration of the GTS portfolio, comprising of approximately 1,000 trust structures for some 900 private clients. Butterfield is also offering positions to all employees who are fully dedicated to GTS in the Cayman Islands, Guernsey, Switzerland, Singapore and Mauritius. This will ensure continuity of service for clients. Butterfield will partner with Deutsche Bank to provide trust solutions to Deutsche Bank’s clients on an ongoing basis. Michael Collins, Butterfield’s chairman and chief executive officer said: “Trust is a core business for us, and the acquisition of the Deutsche Bank Global Trust Solutions business enables us to add scale and professional bench strength to our trust operations in Switzerland, Guernsey and Cayman. “It also provides us with a physical presence in Asia, which we view as a growth market for Butterfield. We look forward to welcoming GTS clients and staff to Butterfield and to the development of new business from an ongoing partnership with Deutsche Bank’s wealth management team.” With client assets of around 299 billion euros, Deutsche Bank’s wealth management business is one of the largest wealth managers worldwide. Fabrizio Campelli, Deutsche Bank’s global head of wealth management, said: “Butterfield is a well-known leader in the trust industry and we look forward to working with them to provide our clients with a broader product offering. The divestiture represents an important step in our strategy of simplifying our business and positioning wealth management for growth in our core markets.” Butterfield has been providing trust and fiduciary services to international clients for more than 80 years. Its award-winning trust business comprises more than 200 professionals based in the Bahamas, Bermuda, Cayman Islands, Guernsey and Switzerland, who provide estate and succession planning services, efficient co-ordination of family affairs, and administration of complex holding structures for a wide variety of financial and non-financial assets. As of 30 September, 2017, Butterfield Trust had Assets Under Administration of approximately $95.2 billion. The transaction is expected to close in the first half of 2018, subject to customary closing conditions.

2017. October 7. A former top executive of the US Central Intelligence Agency has joined the board of Butterfield Bank. Meroe Park has been appointed as a non-executive director. She was most recently the executive director of the CIA, serving as the agency’s chief operating officer in its most senior career post. Prior to her retirement from the CIA in June, Ms Park was a 27-year career intelligence officer and one of the US Government’s leading professionals. She held increasingly senior positions at the CIA, including chief of human resources and a senior mission support officer for locations in Eurasia and Western Europe. Ms Park successfully led key strategic initiatives, including the modernization of the CIA’s technology systems and organizational structure, and the implementation of talent initiatives focused on workforce development and inclusion. Ms Park earned a number of awards during her career, and has twice been the recipient of the Presidential Rank Award, the Executive Branch’s highest honor for Government career professionals. She holds a Bachelor of Science degree from Georgetown University. Michael Collins, Butterfield’s chief executive officer, said: “On behalf of my fellow directors, I am excited to welcome Meroe to the Butterfield board. Meroe’s leadership skills and unique geopolitical perspective, developed over nearly three decades of domestic and international experience with the CIA, will help support our growth in high quality international financial centers. I look forward to working closely with Meroe and our other directors as we continue to build shareholder value.”

2017. August 18. Butterfield Bank is confident it will return its operating expenses to its target level by the end of the year. And while it has twice raised its lending rates this year, in line with moves by the US Federal Reserve, it has no declared intention on what it will do if there is a further hike by the Fed. Regarding expenses, the bank has a 60 per cent efficiency ratio target for the end of 2017. However, between March and the end of June it went off target. Its non-net interest expenses rose to $75.3 million, about $9.5 million higher year-on-year. Part of the reason for the blip was the impact of the 35th America’s Cup. The bank was an official supplier and official Bermuda bank of the event, and it hosted more than 800 guests and clients during the sailing competition in May and June. Michael Collins, chief executive officer has previously described the one-time expenditures as yielding “unparalleled opportunities for business development and retention”. And during a conference call following the release of the bank’s quarterly results last month, he said expenses had been driven by “marketing for the America’s Cup, Sarbanes Oxley, investment in compliance systems and capabilities and the build-out of our Halifax, Nova Scotia Support Centre”. Mr Collins said that the America’s Cup expenses were non-recurring, while the costs of Sarbanes Oxley, a US Act which relates to management and accounting, and investment in compliance systems had picked up in the second quarter “but should start to level off by the end of 2017”. He added: “Expenses related to the Halifax build-out will likely continue through the end of the year, before fading in early 2018, and thereafter will start to create operational efficiencies for the group.” Butterfield is moving some middle-office functions and back-office departments to its service centre in Halifax, Canada. Mr Collins said: “We continue to be very focused on expenses and expect to show significant progress by the end of the year as projects conclude and we achieve the anticipated savings.” During the second quarter, the bank’s net interest income increased $3.6 million over the prior quarter. Michael Schrum, chief financial officer, said: “The increase was due mainly to improving yields on the Bermuda and Cayman mortgage books, as adjustable rates began to reset following the recent Fed rate moves.” On the question of how the bank might react to future Fed rate hikes, Daniel Frumkin, chief risk officer, noted that Butterfield had passed along the March and June rate rises to its Bermuda mortgage customers. But he added: “We don’t have any forward-looking view of what we’ll do on the next rate rise.”

2017. May 11. Butterfield Bank is aiming to cut operating costs as it moves some middle-office functions and back-office departments to its service centre in Canada. It is expected that this will allow the bank to reduce its expenses in Bermuda and Cayman. There has been no announced impact on jobs in Bermuda, but the bank acknowledges the ongoing changes “may involve the redefinition and relocation of select roles to Halifax”. Favorable tax treatment is a carrot for the bank to create more jobs in Nova Scotia. Butterfield has a service centre in Halifax, where it employs about 35 people. Last month it amended a six-year agreement it made in December 2015 with Nova Scotia Business Inc, increasing the projected number of jobs it will create in the province from 50 to 100. By doing so, the bank is qualified to earn up to $1.7 million through payroll tax rebate over the six years of the agreement. However, that amount will be lower if it creates fewer than 100 jobs in Nova Scotia. Halifax is about 40 or 50 per cent less expensive than Bermuda and Cayman, according to Michael Collins, Butterfield’s chief executive officer. When asked by The Royal Gazette if jobs will be lost in Bermuda as a result of building up its operations in Halifax, a spokesman said the middle-office positions for which it is presently hiring in Halifax are primarily additions to the overall headcount of the group. The new positions are said to reflect investment in regulatory compliance and administration. However, the bank is expecting cost savings in the second half of this year, with a reduced salaries bill being a key component. In a presentation to accompany its first quarter earnings, Butterfield showed how salary and other employee benefits totaled $36 million from the start of January to the end of March. That was $1.8 million, or 5.3 per cent higher than the proceeding quarter, and $4.5 million more than the first quarter of 2016. During an earnings conference call with analysts on April 26, Mr Collins was asked about the higher expenses. He said it was caused by two things: one was continuing compliance work “which all banks are doing”, the other was operating and employee costs. “There’s a bit of cost overlap in terms of building our Halifax service centre, so as we continue to move middle-office functions and non-client-facing departments and positions to Halifax, obviously we have to staff up in Halifax before we start reducing expenses in Bermuda and Cayman.” Mr Collins said the bank would start to see savings in the second half of the year as a result of its Halifax operations, and noted: “Bermuda and Cayman are very expensive jurisdictions. Halifax is about 40 per cent or 50 per cent less expensive, and also [has] a very good talent pool, so we’re very excited about that.” During the same discussion, Michael Schrum, Butterfield’s chief financial officer, said the bank’s renegotiation of its contract with outsource IT provider HP Enterprise, was bringing net cost savings of $4 million annually. He said other cost savings will be “primarily on salaries” in the second half of the year. Butterfield’s Halifax operations range from finance to human resources, middle office and administration. The bank’s spokesman said: “As the bank continues to expand in Bermuda, Cayman and Guernsey, and as banking regulations and technology evolve, we will assess the back-office and middle-office functions that support our client businesses, making adjustments to maximize efficiency and enhance customer service. This may involve the redefinition and relocation of select roles (based in Bermuda, the Cayman Islands and elsewhere within the group) to Halifax.”

2016. September 19. Butterfield Bank is eyeing acquisition opportunities in the trust industry after a successful debut for its shares on the New York Stock Exchange. Michael Collins, Butterfield’s chief executive officer, said the money the bank raises from the initial public offering will be used for “general corporate purposes”. But he added that Butterfield is seeing opportunities to grow its fee-generating operations at a time when income from interest-rate-related products has been pressured by a long period of very low rates. Last Friday’s first day of NYSE trading ended with Butterfield’s share price at $24.75, 5.3 per cent above the IPO price target of $23.50. The aim of the IPO is to sell 10.6 million shares and raise $250 million. Mr Collins said Butterfield is seeking to raise $140 million from the primary portion of the IPO, which involves the sale of new shares. The secondary portion, which involves existing shareholders partially cashing out, is set to raise $110 million. Mr Collins said: “There’s a real opportunity in the trust business. Many of the big banks are selling their trust companies and we think we can grow our scale in this area. We want to grow those businesses, because it increases our access to ultra high net worth individuals.” Butterfield has made three acquisitions in the past two years that have strengthened its position as an independent, offshore private wealth manager, with a focus on acquiring wealthy clients. These were the Legis trust and corporate services business in Guernsey, HSBC’s private banking, trust and wealth management business in Bermuda and part of HSBC’s corporate and retail banking business in the Cayman Islands. Mr Collins said the bank had focused on becoming a leaner and more efficient operation over the past five or six years but now its focus was on growth. Banks stocks have struggled in recent years, as low interest rates, the damage caused to them by the global financial crisis and tighter regulations that require them to hold more capital and burden them with more paperwork, combine to limit profitability. But Butterfield’s successful IPO indicates that investors see a bright future for the bank. The rush of money flooding into Butterfield stock left the bank with a share price more than 25 per cent higher on Friday night than 24 hours earlier when it closed at $19.30 on the Bermuda Stock Exchange. Mr Collins, who had spent the two weeks before the IPO with the Butterfield road show, talking to prospective investors in several US cities, said there were several attractions. These included the strong balance sheet, high capital ratio and relatively liquid investments, as well as Butterfield’s deep-rooted corporate and retail banking businesses in Bermuda and Cayman. “Also fee income makes up about 40 per cent of our revenue, which is more than with the traditional banking model,” Mr Collins said. The bank’s longevity may also help to increase investor confidence in its shares. “We are the oldest bank trading on the New York Stock Exchange,” Mr Collins said. “What the IPO shows is that a bank with roots in Bermuda can compete on the world stage.”

2016. September 17. Bermuda made its mark on the New York Stock Exchange yesterday as Butterfield Bank sold its first US shares, a troupe of Gombeys took to the trading floor and Michael Dunkley rang the opening bell. It was all to mark Butterfield’s initial public offering of shares, a historic milestone for the 158-year-old Bermudian bank, which was aiming to raise $250 million. Mr Dunkley, the Premier, who brandished a yellow Gombey tomahawk as he stood with the Butterfield group on the balcony of the NYSE, said he was “excited and proud” to have had the opportunity to officially open Wall Street’s trading day. “I’ve been blown away by the organisation and commitment that this Bermuda community bank has shown to make this happen,” the Premier added. “It’s a wonderful occasion and a great day for Bermuda.” The trading day ended with Butterfield’s shares at $24.75, 5.3 per cent higher than the IPO pricing of $23.50 per share. Trading volume was almost 4.9 million, putting Butterfield well on the way to its target of selling 10.6 million shares. Michael Collins, Butterfield’s chief executive officer, said he was “delighted” with the smooth launch of the IPO, with the opening trade of $25.10 some 7 per cent above the asking price. “We’ve been working on this for more than a year — it takes that long to put together the prospectus,” Mr Collins said. “We’ve spent the past two weeks on a road show around various American cities, having six or seven meetings a day and telling the Bermuda story.” The Bermuda Tourism Authority grabbed the chance to promote the island to the wealthy types who frequent Wall Street. Traders coming to work were greeted with all the noise and colour of the Gombey Evolution Troupe, a pink Vespa parked outside the NYSE building and some of their trader colleagues wearing Bermuda shorts. Regular watchers of US business channel CNBC’s Squawk on the Street programme could not have failed to notice the distinctive peacock feather Gombey headdresses moving around behind the head of presenter Jim Cramer. “These traders have never seen a day like this,” added Mr Dunkley, who said the occasion was an excellent opportunity to showcase the Bermuda brand. Of the 10.6 million Butterfield shares being sold, $140 million will be raised by the bank from the sale of new shares — which Mr Collins said it would use for “general corporate purposes” — and $110 million from existing shareholders selling off some of their stock. The bank’s shares hit a first-day high of $25.38 at around midday in New York and even a dip below $25 in the last half-hour of the trading day could not take the shine off a successful IPO launch. It was also a satisfying day for some of the institutional investors who had come to Butterfield’s rescue with a $550 million injection of capital in 2010 at a time when the bank was reeling from soured investments tied to US residential mortgages in the wake of the global financial crisis. The Carlyle Group, a US private equity firm, owned 22.7 per cent of the bank before yesterday and is looking to sell off 1.4 million shares to reduce its stake to 17.5 per cent, while the Wellcome Trust is selling about half of its 3.7 million shares. These investors bought in at a stock split-adjusted price of $12.10 six years ago and more than doubled their money on whatever shares they sold yesterday. Shareholders who bought in more recently will also be smiling — at the close yesterday the bank’s share price was more than 25 per cent higher than the $19.30 closing price on the Bermuda Stock Exchange just 24 hours earlier. The bank will continue to trade on the BSX as well as the NYSE.

2018. January 11. Bermuda-based reinsurance broker Beach & Associates Ltd has been bought out by Acrisure LLC. In a statement, Beach said the Michigan-based Acrisure bought the firm from New York-based private-equity firm Aquiline Capital Partners. Terms of the deal were not disclosed. The purchase is expected to close in the first quarter, pending regulatory approvals, the statement said. Beach’s office is on the fourth floor of The Roger Davidson Building on Reid Street, Hamilton. It also has offices in the US, UK, Canada and Switzerland. Beach will retain its name, identity and management, including London-based chief executive officer Grahame Millwater, and “will continue to operate as an independent advisory and transactional broking business within Acrisure”. Beach CEO Mr Millwater said: “It is difficult to imagine a more suitable way for us to transform from private-equity ownership than to become part of such an extraordinary business as Acrisure. “The cultural fit is remarkable, our business ambitions are aligned and we have a deep regard for Acrisure’s management team and their strategy. This transaction gives both us, and our clients, long-term clarity and we are excited about being afforded the support to pursue ambitious growth plans. Aquiline has been a deeply supportive investor and we are grateful for their contribution to our success so far.” Gregory Williams, CEO of Acrisure, said: “For our first acquisition outside North America, we were looking for a strong management team, international reach and significant reinsurance and insurance portfolio expertise. In Beach, we have found all of that and more. We look forward with real enthusiasm to both supporting Beach’s growth and to partnering with a world-class executive team as we grow our collective business.” Jeff Greenberg, chairman and CEO of Aquiline, said: “We have been delighted to have been associated with Beach over the past three years. Grahame and the team are first-rate insurance and reinsurance professionals, and they have found an ideal solution for their next stage of development in a future partnership with Acrisure. We wish them all the best for the future.” Last week, Aquiline led a group of investors which provided a $500 million commitment to Bermudian run-off specialist Armour, enabling the company to set up a new reinsurer. In 2005, Aquiline backed the formation of Validus Holdings, which set up as a $1 billion reinsurer in the wake of a market dislocation sparked by losses relating to hurricanes Katrina, Rita and Wilma.

December 22. This Bermuda-based reinsurance and wealth-management firm has been linked to a $1 billion fraud case in the US. The Beechwood group, which includes Beechwood Bermuda International and Caymanian-based Beechwood Re, has been impacted after top executives at New York-based hedge fund Platinum Partners were arrested and charged with running a fraud that US federal prosecutors have described as “like a Ponzi scheme” as its largest investments slumped. Now Beechwood is in talks to sell all or most of itself off after a backlash from some of its clients. Beechwood, with offices in Bermuda, the Caymans and New York, has been working to sever its links with Platinum after the one time $1.35 billion hedge fund manager became the focus of probes by US federal authorities and put its funds in liquidation in July. Beechwood, which had been a fast-growing reinsurer, was founded in 2013 with some indirect funding from Platinum and some crossover in personnel, is understood to be in talks with large insurance and private-equity firms, Reuters reported. A spokesman for Beechwood said: “Beechwood has a successful business model that is attractive to investors. Beechwood’s unfortunate historical relationships with individuals from Platinum are causing substantial reputation issues for the firm separate from its performance. Beechwood’s confidential discussions with strategic investors continue to move forward.” One of Beechwood’s major clients, Indiana insurers CHO Financial Group, pulled business from the firm after the scale of problems at Platinum became clear and sued three current and former Beechwood executives seeking damages. Another client, Senior Health Insurance Company of Pennsylvania, is liquidating its Platinum-related holdings, invested for them by Beechwood. Beechwood Bermuda opened up offices in Hamilton two years ago. The company bought Bermuda-based insurance and investment firm Old Mutual in January this year. Old Mutual, which had more than $1 billion in assets, closed for new business in 2009. The indictment in a New York court against Platinum chief Mark Nordlicht and six other current or former executives connected to the firm alleges that the firm took part in a pair of schemes aimed at defrauding investors. It is alleged that Mr Nordlicht and four other defendants since 2012 defrauded investors by overvaluing illiquid assets held by its Platinum Partners Value Arbitrage funds, mostly troubled energy-related investments. This caused “a severe liquidity crisis” at Platinum, which tried to fix the problem through high-interest loans between its funds before selectively paying some investors ahead of others. Robert Capers, US Attorney in Brooklyn, New York, said: “The charges highlight the brazenness and the breadth of the defendants’ lies and deceit.” Mr Capers said that the case involved one of the largest alleged investment frauds ever and that Platinum was exposed as having “no more value than a tarnished piece of cheap metal”. Prosecutors claim that Mr Nordlicht, David Levy, Platinum’s co-chief investment officer and Jeffrey Shulse, former CEO of Texas energy firm Black Elk Energy Offshore Operations, majority owned by Platinum, plotted to defraud bondholders of the energy firm, now closed, out of $50 million. The indictment also alleges that Platinum executives used the Beechwood group of reinsurance companies, partially controlled by Platinum’s principals, to rig a bond vote and pay the hedge fund managers ahead of creditors of Black Elk. Platinum and Beechwood associate Murray Huberfeld was arrested on criminal corruption charges in June and Platinum’s New York headquarters were raided by Federal agents two weeks later in a separate fraud investigation, which ended in Mr Nordlicht and other Platinum executives being indicted. It is alleged that Mr Huberfeld orchestrated a bribe to the head of the New York City prison guards’ union, Norman Seabrook, to secure a $20 million investment in Platinum. Mr Huberfeld, who provided cash to help launch Platinum in 2003, with the firm later taking over separate hedge funds he managed, and Mr Seabrook deny the allegations. The US Securities and Exchange Commission said it was seeking a court-appointed receiver for funds managed by Platinum Credit Management, the firm’s second-largest vehicle after Value Arbitrage. Mr Nordlicht pleaded not guilty to charges including securities fraud and was granted bail on a $5 million bond, secured by $500,000 in cash. Mr Levy and Uri Landesman, former president of the firm’s signature fund, Joseph SanFilippo, Value Arbitrage’s former chief financial officer, Joseph Mann, a former Platinum marketing executive and Daniel Small, a Platinum managing director, also pleaded not guilty.

2015. January 5. Bermuda-based insurance and investment firm Old Mutual has been bought by Beechwood Bermuda. Old Mutual, which has more than $1 billion in assets, closed for new business in 2009. Now Beechwood, a major provider of international investment plans that has more than $2 billion in assets, has completed the buyout of the firm for an undisclosed price. Beechwood chief executive officer Mark Feuer said: “This transaction offers a unique opportunity to strengthen our position as a global leader and demonstrates our dedication to providing innovative financial solutions for international investors. “Our scale and resources will allow us to continue to meet and further develop client demand for our products for years to come.” Beechwood has pledged continuation of service support for Old Mutual products over the next three years, backed up with support from Beechwood’s wealth management business. As part of the agreement, Old Mutual will reinsure certain policy guarantees until they mature in 2017 and 2018. Beechwood said it will contact Old Mutual’s distribution partners to discuss the transition and introduce Beechwood’s Accumulator Plus and Escalator Plus investment plans, which it said offer attractive rates and unique investment features such as principal protection guarantees. David Lessing, executive vice president of products and services at Beechwood, commented: “The growing client demand for the Beechwood products reinforces our decision to make a significant commitment to this business in support of our distribution partners and their financial advisers.” Beechwood Bermuda is a long-term insurer based in Hamilton. The company also owns Caymans-based Beechwood Re. The companies were formed to service demand from non-US high-net-worth investors seeking innovative, guaranteed investment products, and US and international insurers in need of attractive capacity in the life insurance and annuity reinsurance market.

2018. December 17. Bermuda-domiciled high-end hotel operator Belmond Ltd is to be bought out by French luxury giant LVMH in a deal worth $2.6 billion. Belmond’s shares surged by nearly 40 per cent in New York Stock Exchange trading on Friday after the news was announced to a close to the LVMH’s $25-a-share offer price. Belmond is the owner of New York’s “21” Club and high-end resorts around the world. The transaction is LVMH’s largest since taking full control of Christian Dior for more than $7 billion last year and pushes the company further into services amid rising concern about the sustainability of the Chinese demand that’s driven fashion industry growth. The acquisition is one of LVMH founder Bernard Arnault’s biggest, rivaling the purchases of Bulgari and Loro Piana. It comes as consumers shift spending towards trips, health clubs, restaurants and entertainment and interest in shopping malls dwindles. Belmond, which used to be known as Orient-Express Hotels, owns or has stakes in more than 30 high-end hotels around the world, from St Petersburg to Anguilla in the Caribbean. In addition to the ‘21’ Club power restaurant in Manhattan, its stable of luxury properties includes a cruise line in France, a London-to-Venice train line and safari camps in Botswana. The deal will expand the French company’s high-end hospitality offerings. LVMH formed a hotel management group in 2010 to oversee its operations in the sector, which include properties under the Cheval Blanc name in locations like the Courchevel ski resort in the French Alps. LVMH’s Bulgari jewellery brand has six hotels, including one in Shanghai that opened in July. It plans to open hotels in Moscow, Paris and Tokyo in the next four years. Aside from the deal for the rest of Christian Dior, which LVMH already controlled, the French conglomerate had been relatively quiet on the mergers-and-acquisitions front since buying German suitcase maker Rimowa in 2016. The agreement ends a four-month sale process as Belmond has sought to take advantage of a strong hospitality market. The company said in August it hired Goldman Sachs Group and JPMorgan Chase & Co for a strategic review. Analysts speculated a sale could involve breaking up the company’s assets, since its properties could be of value as trophies for ultra-wealthy investors including sultans and oligarchs. LVMH is a surprise winner for Belmond. Among those weighing an offer for all or part of the company were KSL Capital Partners, Blackstone Group, KKR & Co and Ashkenazy Acquisition, people familiar with the matter told Bloomberg in October.

2018. November 15. Bermuda Aviation Services Limited made a loss of $205,000 for the six months to the end of September, compared to a $228,000 loss for the same period a year ago. Its income from continuing operations was $63,000, an improvement on a loss of $476,000 year-on-year. The loss from discontinued operations is attributable to the sale of the company’s Efficient Technologies Bermuda Ltd. subsidiary which was completed in June. Companies within the BAS group include BAS-Serco, Besco, CCS, Otis, Weir Enterprises and Eastbourne Properties Limited. The group said its strategic review and resulting plan completed in March is in the implementation phase. In a statement, BAS said management has reduced expenses throughout the group, continues to rationalize product line profitability and has initiated process flow re-engineering to further improve efficiencies and to improve margins at the subsidiary level. Gross margin for the period was $8.9 million, which was flat over the comparative period. Although revenues for the six months were $14.8 million in comparison to revenues of $15.7 million in the comparative period, direct costs declined by $900,000. BAS stated the result reflected efforts to improve margins across the group as revenue growth continues to be challenging in the current market climate. Operating expenses decreased $500,000 compared to the same period in 2017. The company reduced its bank loan by $400,000. Earnings per share from continuing operations were one cent per share, an improvement of 10 cents, year-on-year. The company is continuing with its suspension of dividends for the remainder of the fiscal year. The company also noted that Gerald Simons retired as a director in August. The board thanked him for his many years of service and contribution to the group.

2019. June 18. Insurer BF&M Ltd posted a $4.8 million profit for the first quarter of 2019, up from $3.1 million in the corresponding period last year. John Wight, the company’s group chairman and chief executive officer, said: “BF&M reported good results for the first quarter of 2019. Our earnings were driven by the strong performance of both the property and casualty operations and our life and health business. This, combined with solid investment results, helped to offset higher overall loss experience in the quarter.” BF&M offers property and casualty products as well as health, life, annuities, pension products, investment advisory and financial planning services. Three of the group’s four main operating companies — BF&M General Insurance Company Ltd, BF&M Life Insurance Company Ltd and Caymanian-based Island Heritage Insurance Company Ltd — are rated A by ratings agency AM Best, while the Insurance Corporation of Barbados Ltd is rated A-. Mr Wight added: “BF&M continues to hold the highest ratings attributed to domestic insurers in Bermuda or the Caribbean. This reflects our ability to be there for our customers when they need us — a message that is all the more meaningful at the start of the 2019 hurricane season.” Equity attributable to shareholders at March 31 this year was $279.5 million. BF&M said general fund assets totaled $1.2 billion of which $140.8 million was held in cash and cash equivalents. Gross premiums written for the period were $98 million, driven by growth in home insurance business experienced in several islands in the Caribbean. With increased premiums written, the company also benefited from increased commissions on business ceded to the reinsurance market. Commission and other income increased from the prior year by 6 per cent to $13.7 million. Shares of BF&M closed at $17.05 on the BSX yesterday, giving the company a market valuation of about $150.5 million. The stock is up 5.2 per cent this year to date.

2019. March 21. John Wight, chief executive officer of BF&M Ltd, is to become the insurer’s chairman as well. Mr Wight will take on the new dual role when Gavin Arton retires as BF&M’s chairman at the company’s next annual general meeting on May 15, 2019. Mr Wight has served BF&M as president and CEO since 2005, before which he was executive vice-president and chief financial officer for the company, having joined in 1992. He has 35 years of experience in the financial services sector in Canada and Bermuda, and holds FCPA, FCA and CPCU designations. Mr Arton has been chairman of BF&M since 2008. He was elected to the board as a director in 1998, since which he also assumed directorships with several of BF&M’s subsidiary companies. Also retiring from the board of BF&M at May’s meeting will be Garry Madeiros, who has served two terms on the board of BF&M with the second being since 2006, and C.L.F. “Lee” Watchorn, who was appointed as a director in 2006. Mr Arton said: “I advised the board in May of 2018 that I would be retiring as chairman and a director of BF&M following the Annual General Meeting in May 2019. I am pleased that the board has unanimously agreed to appoint John Wight as chairman and wish him and the company every success going forward.” Mr Wight said: “On behalf of the board, I would like to thank Gavin, Garry and Lee for their significant contributions to BF&M over many years.”

2018. December 11. BF&M Ltd posted net income of $16.9 million for the first nine months of the year, helped by an 8 per cent reduction in operating expenses. The profits were up threefold from last year’s corresponding period, when hurricane losses in the Caribbean islands impacted results. John Wight, BF&M’s chief executive officer, said: “BF&M reported strong earnings for the nine months in 2018, along with strong operating results for the third quarter. “Our earnings were driven by the solid performance of both the life and health business and property and casualty operations, with continued support from income on non-insurance operations.” The company said operating expenses fell 8 per cent to $46.2 million for the period. Gross premiums for the nine months totaled $262.3 million, reflecting an increase of 2 per cent from the corresponding 2017 period. BF&M offers property and casualty products as well as health, life, annuities and pension products, and investment advisory services. Mr Wight added: “Our strategy of diversification by geography and by line of business, and our leading financial strength ratings continue to form the cornerstones of our success.” Equity attributable to shareholders at September 30, 2018 was $273.3 million. General fund assets totaled $1.3 billion of which $163.8 million was held in cash and cash equivalents. Commission and other income increased from the prior year by 7 per cent to $38.8 million. The company said “2017 hurricanes continued to negatively impact commission income in the current year, but the impact was more than offset by commissions earned on additional reinsurance coverage and higher levels of proportional reinsurance ceded due to changes in our reinsurance programme and profit share reported on non property business”. Investment income for the year reflected a $14.6 million decrease in the fair value of investments for the period, compared to an $8.9 million increase in 2017. As a result of the company’s disciplined asset-liability matching policy which looks to limit volatility of reported earnings as a result of interest rate swings the Company reported a $3.9 million net gain on the difference between the fair value of investments which support certain liabilities and reported reserves. Short-term claims and adjustment expenses fell 32 per cent to $19.4 million of which $12.5 million was a decline from 2017 storm claims. Life and health policy benefits decreased by 20 per cent to $65.6 million. “Life and health policy benefits” includes changes in life insurance reserves which decreased in 2018 compared to a smaller increase in 2017 in the same period. These reserve movements were primarily driven by differences in market interest rates over the respective periods.

2018. June 20. Hurricane and storm losses brought record claims for BF&M Ltd last year and their impact continued to be felt by the company in the shape of higher reinsurance costs during the first quarter. The company has reported a net income of $3.1 million for the first three months of the year, down from $6 million in the same period last year. “BF&M reported solid earnings for the first quarter of 2018, after one of the most challenging years in the group’s history. While impacted by higher reinsurance costs driven by the 2017 storms, our results reflect strong earnings in our life and health business and a return to profitability in our property and casualty lines,” said John Wight, president and chief executive officer. He added: “The BF&M group continues to hold the highest ratings of any domestic insurer in Bermuda or the Caribbean. The company’s performance in 2017, after the most active storm season ever in the Caribbean, attested to the significance of our financial strength ratings. With the 2018 hurricane season under way, our customers can be confident that BF&M will be there for them when. The BF&M group consists of four main insurance operating companies, AM Best has assigned financial strength ratings of A (excellent) to Bermudian-based BF&M General Insurance Company Limited and BF&M Life Insurance Company, and Cayman Islands-based Island Heritage Insurance Company Ltd, with an A- (excellent) to Barbados-based Insurance Corporation of Barbados Limited. Equity attributable to shareholders at the end of March was $262.7 million. General fund assets totaled $1.7 billion of which $267.5 million was held in cash and cash equivalents. The group had gross premiums written for the period of $77.9 million, down 3 per cent year on year. This was due to a reduction in premiums on certain commercial properties and from premium rates pressure in some territories. Investment income for the year reflected a $10 million decrease in the fair value of investments for the period. BF&M said in a statement: “As a result of the company’s disciplined asset liability matching policy, which looks to limit volatility of reported earnings as a result of interest rate swings, the company reported a negligible net loss on the difference between the fair value of investments which support certain liabilities and reported reserves.” Commission and other income increased from the prior year by 26 per cent to $12.9 million. The company said the impact of hurricanes Irma and Maria, last year “continued to negatively impact commission income in the current year, but the impact was more than offset by additional reinsurance coverage and higher levels of proportional reinsurance ceded due to changes in our reinsurance programme and profit share reported on non property business”. Short term claims and adjustment expenses decreased 11 per cent to $5.8 million from favourable claims experience. Life and health policy benefits decreased by 42 per cent to $16.2 million. Operating expenses decreased 6 per cent to $15.3 million for the year.

2017. December 7. A former executive of BMO Bank of Montreal has joined the board of BF&M Limited. Gordon Henderson recently retired as president and chief executive officer of BMO Life Insurance Company, where he had oversight of the bank’s creditor insurance, life insurance and reinsurance businesses. Before joining BMO he held senior executive positions with Aetna Canada. Gavin Arton, BF&M Limited board chairman said: “Gordon brings deep experience and understanding of the insurance industry, from both business and legal perspectives. His insights will be invaluable as we continue to implement effective strategic guidance and good governance.” The BF&M board is currently made up of 12 directors, of which nine are Bermudian.

2017. June 20. BF&M Ltd’s profits fell by more than $1 million in the first quarter, as results were impacted by the knock-on effects of last year’s hurricane activity. The insurer and pension provider reported net income of $6 million for the first three months of the year, down from $7.1 million in the same period in 2016. John Wight, BF&M’s chief executive officer, described the earnings, which represented an annualized return on equity of 8.8 per cent, as “solid. Core operating earnings in the first three months were lower than the same period in 2016 by $1.1 million, mainly due to the loss of profit commission as a result of the 2016 hurricanes — 2016 was the most active hurricane season that the group has ever seen collectively,” Mr Wight said. BF&M revealed in April this year that claims from hurricanes cost it more than $10 million last year. Some of the storm claims were related to Hurricane Nicole, which battered Bermuda last October, causing an estimated $15 million in total insured losses on the island. Just days before, Hurricane Matthew had ravaged the Bahamas, one of 15 Caribbean islands where BF&M operates. Gross premiums written for the first quarter totaled $80 million, down 8 per cent from the corresponding period last year as a result of a reduction in fronting business. “Fronting business is generally fully reinsured and has little to no impact to the company’s bottom line,” BF&M said in a statement. According to the International Risk Management Institute, fronting is the use of a licensed insurer to issue an insurance policy on behalf of a self-insured organisation or captive insurer without the intention of transferring any of the risk. The risk of loss is retained by the self-insured or captive insurer with a reinsurance agreement. Fronting companies charge a fee for this service. BF&M said shareholders’ equity at March 31, 2017, was $269.1 million, up $4.6 million or 1.7 per cent from the end of last year. General fund assets totaled $1.1 billion, of which $118.1 million was held in cash and cash equivalents. Operating expenses increased by 3 per cent to $16.3 million. Investment income for the year reflected a $2.8 million increase in the fair value of investments for the period. Commission and other income increased from the prior year by 6 per cent to $10.3 million due to a profit share increase on life business, partially offset by the negative impact of 2016 hurricanes on reinsurance profit commissions on property business. Short-term claims and adjustment expenses increased 16 per cent to $6.5 million on higher loss claims in 2017. Life and health policy benefits, which are recorded at fair value, decreased by 22 per cent to $28 million, primarily as a result of a large fair value impact in 2016 of $11.2 million compared to $2.3 million in 2017.

In May 2014 it gave a bleak picture of the economic outlook for Bermuda based on its third-quarter results. Results reflected the grim financial reality in the performance of key Bermuda companies and a concern that economic recovery will be long and slow unless significant decisions are made to encourage business investment in Bermuda and there is an increase in resident numbers. Listed on the Bermuda Stock Exchange, it makes money trading in Bermuda stocks. Yet the performance of these equities has been recently affected by market conditions, together with structural and regulatory issues.

2019. June 28. Bermuda Press (Holdings) Ltd made a profit of $285,000 in the first six months of its fiscal year — down from $1.42 million a year earlier. The company, which owns The Royal Gazette, as well as commercial printing, real estate and retail interests, said the decrease in profitability is the result of a year-on-year decline of operating revenues of $1.95 million in the half-year ended on March 31, 2019. In its interim report, the company stated that “management is working tirelessly to find operating efficiencies and ways to further reduce operating costs to offset the most recent slowdown in the economy. Year to date, management have reduced costs by $852,000, as compared to the same six-month period last year”. The company said its publishing and retail division saw a $1.58 million, or 17 per cent, decrease “as a result of a slowdown in the Bermuda economy and changing consumer behaviours”. There was also a 16 per cent decrease in rental revenue, and a 4 per cent decrease in commercial printing revenue. Operating revenue was $11.22 million. In its report, the company stated it had made the “difficult decision” in 2018 to exit the commercial stationary supply business, and that the management and board continued to review operating results of all divisions to ensure that loss-making businesses are not being funded at the expense of shareholders. Basic earnings per share for the six months were 20 cents, down from 85 cents in the previous year. BPHL said its real estate holdings remained the most profitable segment with an overall occupancy rate of 96 per cent, with 57 per cent occupied by third-party tenants. Highlights for the period included the acquisition of a 20 per cent minority interest in Crown House Properties, which means BPHL now owns 100 per cent of the company. While The Royal Gazette has launched video product to enhance customer engagement. The company stated that renovation work on a floor of Crown House had been completed in a short timeframe to ensure a new tenant could take possession on June 1, while renovation work has been carried out on the vacant second floor space of the Roger Davidson Building to make it ready for market on July 1. Bermuda Stock Exchange-listed BPHL saw its share price rise from $6.15 to $7 during the six-month period. The company has continued to pay a dividend of seven cents per share for the quarter ended March 31. The report also highlighted the company’s sponsorship roles in the MS Amlin ITU World Triathlon Bermuda, Bermuda International Film Festival, Bermuda End-to-End and the Bermuda Festival. It added that supplying the signage and branding solutions for ITU event had reinforced Bermuda Press Digital “as a key player in the sign-printing and solutions business in Bermuda”. The board of directors acknowledged and thanked BPHL’s employees “for their commitment, hard work and dedication”.

2017. March 21. Aecon today announced the launch of Bermuda Skyport Corporation Limited, a special-purpose company which will “manage and coordinate the overall delivery of the Bermuda airport's redevelopment project for a 30-year concession term. Skyport, a Bermuda-based company wholly-owned by Aecon Concessions, will take on the responsibility of operations, maintenance, and commercial functions for the L.F. Wade International Airport,” the announcement said. "Additionally, Skyport will manage and coordinate the overall delivery of the redevelopment project for a 30-year concession term. On completion of the new airport terminal, Skyport will operate and maintain it until 2047, when the airport will revert back to the Government of Bermuda. Skyport has responsibility for building Bermuda's new airport terminal and for operations at LF Wade International Airport, having taken on staff that were previously public-sector workers 

2019. June 10. An oil tanker attacked in the Gulf of Oman today has links to Bermuda. It was the Kokuka Courageous. It was reported to have a breach of its hull above the waterline. The crew was evacuated from the ship. The Panama-flagged, Japanese-owned tanker is operated by Bernhard Schulte Shipmanagement through its Singapore office, and was transporting methanol from Saudi Arabia to Singapore. It is not clear what caused the blasts in the separate incidents. The United Kingdom Maritime Trade Operations, which is part of the Royal Navy, said it was aware of the incident involving both this and another tanker and is advising ships moving through the area to exercise extreme caution. Today’s incidents come a month after another four tankers were damaged in the same region, in what has been called a “sophisticated and coordinated operation”. At the time, the US accused Iran of direct involvement in those incidents, an accusation Iran denied. A senior Iranian official today told the BBC that the country has no connection with today’s incident.

• For information regarding the showcase, contact Kevin DeSilva, client relationship manager at Bespoke Analytics, at kdesilva@bespoke.bm

2017. March 30. A Bermuda-based software development company has launched a new one-stop place for data aimed at the growing captive insurance industry. Bespoke Software said their new inTell Captive software streamlined data and made it easier for captive managers to access, use and analyze the information they hold. Now the company is to showcase inTell Captive to the on-island industry and plans to exhibit its capabilities at the annual Bermuda Captive Conference in September. Paul McLeod, president of Hamilton-based Bespoke, said: “It’s a business intelligence end-to-end solution developed with the captive insurance industry in mind. “It allows captive management companies to pull together all the data they have around their captive insurance companies. Traditionally, the captive industry has been very late to market as it were in addressing technology capabilities, specifically around their data. The captive market is growing very rapidly and putting competitive pressure on this space and being able to leverage your data is a good way to stay competitive. It’s a way for captive management companies to realize benefits from their data. That data is useless unless you can do something with it. It’s an asset of the organisation and money can be made leveraging that asset, investing in that asset and realizing a return on it.” The company said that inTell Captive can get companies up and running within four months compared to traditional data-warehousing methods that can take two to three years to set up. The system can report and track results, allowing for faster and more effective business decisions, ease regulatory reporting burdens and provide forecasting and planning. The product also manages foreign exchange, reducing the cost of captive management and give a competitive edge through mobile, online access to data, dashboards benchmarking and performance analysis. It also provides tools for reconciliation, audit and compliance to assist in operations and regulatory reporting. Mr McLeod said: “A lot of these companies will manage the data they collect in different ways — spreadsheets, accounting systems — and the ability for someone to pull all that together is almost non-existent. What we have is a way for competitive management companies to realize benefits from their data. We talk to these companies and they all talk about how the pressures are increasing on them to have this data.” And Mr McLeod pointed out that increasing regulation meant that authorities were demanding more and more information from companies. He added: “If you are a company managing hundreds of captive insurance companies, that’s an enormous effort — it should be almost an automated process.”

2019. October 7. A strong balance sheet, consistent net gains, and a diversified product portfolio and geographic operations have won BF&M Ltd an approving nod from rating agency AM Best. The Bermudian-based insurer’s catastrophe reinsurance protection and approach to risk management, mitigating the financial impact of losses in the Bahamas from Hurricane Dorian, was also highlighted by AM Best as it affirmed the financial strength rating of a number of BF&M’s operating units. The BF&M Life Insurance Company Ltd, the BF&M General Insurance Company Ltd, and the Island Heritage Insurance Company Ltd, all had their financial strength rating of A (Excellent) affirmed. In addition, the A- (Excellent) financial strength rating of Insurance Corporation of Barbados Ltd, of which BF&M is a majority shareholder, has also been affirmed by the agency. The outlook for all ratings is stable. John Wight, group chairman and chief executive officer of BF&M, said: “BF&M holds the highest ratings consistently given to a domestic insurer in the Caribbean year after year. This endorsement of our financial strength and consistent track record over the long term will serve to further strengthen our position as an insurer of choice for our customers and partners.”

2019. September 9. BF&M Ltd has reported shareholders’ net income of $11.4 million for the first half of the year, an increase of $4.7 million year-on-year. John Wight, group chairman and chief executive officer, said: “For the first half of 2019, BF&M reported strong earnings by both our property and casualty operations and our life and health business. Strong investment results also contributed to our performance for the six-month period.” Equity attributable to shareholders at June 30 was $284.7 million. General fund assets totaled $1.3 billion of which $143.4 million was held in cash and cash equivalents. Gross premiums written for the period were $198.8 million, driven by growth in home insurance business in the Caribbean and higher group health and annuity premium. With increased premiums written, the company also benefited from increased commissions on business ceded to the reinsurance market. Commission and other income increased from the prior year by 11 per cent to $25.6 million. Investment income for the period reflected a strong first half with a $26 million increase in the fair value of investments in the period. Short term claims and adjustment expenses decreased 6 per cent, year-on-year, to $12.3 million from favourable loss experience in 2019. Life and health policy benefits increased by 111 per cent to $80.8 million. Life and health policy benefits includes changes in life reserves, which increased in 2019 compared to the same period last year due to differences in market interest rates. Operating expenses increased 5 per cent to $32.5 million for the period. Mr Wight said: “At this time, our thoughts are with all those affected by the devastation from Hurricane Dorian. We stand ready to do our part in beginning the process of rebuilding, not just through our donation in support of the work of the Red Cross, but by promptly assessing and processing claims as these start to come in.” The company said it is too early to provide an estimate of the loss the BF&M group has suffered from Hurricane Dorian, however it expects that the loss will be contained within its reinsurance programme. BF&M offers property and casualty products as well as health, life, annuities, pension products, investment advisory and financial planning services.

2019. April 12. BF&M Ltd has announced an increase in the quarterly dividend, for declaration on June 28, 2019, from 22 cents per share to 24 cents per share, payable to shareholders on July 15, 2019. John Wight, the insurer’s chief executive officer, said: “In reflection of the company’s strong financial performance for the year ended 2018 and the strength of our capital position, the board has elected to increase the quarterly dividend by 9 per cent.” BF&M shares last traded at $15.05 on the Bermuda Stock Exchange. At that price, the newly raised dividend will represent a 6.37 per cent annualized yield.

2018. August 8. A former minister in the government of Barbados has been criminally charged with laundering bribes allegedly received from a Barbadian insurance company, whose controlling shareholder is Bermuda insurer BF&M Ltd. US prosecutors claim that Donville Inniss, a former industry minister and parliamentarian in the Caribbean country, accepted more than $36,000 in bribes from the Barbadian insurer in exchange for his help in landing Barbadian government contracts. He is charged with conspiracy to launder money and two counts of money laundering. Mr Innis, 52, was arrested on Friday in Florida and appeared in federal court in Tampa on Monday. He was released on a $50,000 bond. In an indictment unsealed by US federal court for the eastern district of New York, prosecutors do not name the Barbadian company, nor the Bermudian-based majority owner. However, John Wight, chief executive officer of BF&M, confirmed to The Royal Gazette yesterday that the Barbadian insurer is the Insurance Corporation of Barbados Ltd (ICBL), in which BF&M has a majority interest. The indictment alleges that three executives of the Barbadian company at the time of the events, the chief executive officer, the chief financial officer and a senior vice-president, “caused the Barbados Company’s majority shareholder, the Bermuda Company, to make bribe payments” to Mr Inniss in 2015 and 2016. BF&M bought a majority share of ICBL from the government of Barbados for $25.85 million in November 2005 and now owns a 51.7 per cent stake in the company through its wholly owned subsidiary, Hamilton Financial Ltd, which is based in St Lucia. Mr Wight, who is chairman of ICBL, said: “In 2016 the board of directors of ICBL became aware of improper conduct by certain senior managers. ICBL has a zero-tolerance policy for this conduct and immediately dealt with the issue in the appropriate manner. I am not able to elaborate any further on this matter at this time.” In January 2017, ICBL announced that Ingrid Innes had resigned as the company’s CEO and had stepped down from its board of directors. US prosecutors claim that as industry minister, Mr Inniss exercised authority over the Barbados Investment and Development Corporation (BIDC) and that he used his official position to renew two separate insurance contracts with ICBL. In exchange, ICBL executives of the Barbados company agreed to pay Mr Inniss a bribe of $16,536.73 in August 2015 and a second bribe of $20,000 in April 2016, prosecutors claim. After the Barbados executives submitted false invoices, these sums were paid by the Bermudian company to the New York Dental Company’s account at a bank in Elmont, New York, according to the indictment. The prosecutors state: “The Barbados Company employees, including Barbados Company Executives 1, 2 and 3, did not disclose to the Bermuda Company that the payments were for the benefit of a Barbadian government official and instead falsely claimed that the payments were for ‘[c]onsulting services’.” The chief executive officer of the New York Dental Company is not named in the indictment, but is described as a friend of Mr Inniss and a co-conspirator. In April 2016, after the second alleged bribe payment, the New York Dental Company made payments of $9,000, $8,000 and $2,750 to Mr Inniss, the indictment alleges. Richard Donoghue, United States Attorney for the Eastern District of New York, said: “As charged in the indictment, Inniss abused his position of trust as a government official by taking bribes from a Barbadian company, then laundered the illicit funds through a bank and a dental company located in the Eastern District of New York. The Department of Justice will continue to hold accountable corrupt government officials here or abroad who use the US financial system to facilitate their criminal conduct.”

2017. September 11. BF&M Ltd reported net income of $13.9 million for the first half of 2017 — up from $13.2 million in the first half of 2016. The profit represented a 10 per cent return on shareholders’ equity. John Wight, BF&M’s chief executive officer, said: “Operating results were strong, driven by favorable claims experience and positive net fair value gains on investments and reserves, despite the impact of lost 2017 reinsurance profit commission due to 2016 hurricanes Matthew in the Bahamas and Nicole in Bermuda.” BF&M operates in 15 jurisdictions, including Bermuda and many Caribbean jurisdictions. Equity attributable to shareholders at June 30, 2017 was $275.2 million. General fund assets totaled $1.2 billion of which $120.7 million was held in cash and cash equivalents. Gross premiums written for the period were $175.8 million, reflecting a decrease of 4 per cent from the corresponding 2016 period as a result of a reduction in premiums on certain commercial properties. The reduction had “little to no impact on the company’s bottom line”, BF&M said. The fair value of investments for the period rose $8.3 million, compared to $18.9 million in 2016. “As a result of the company’s disciplined asset liability matching policy which looks to limit volatility of reported earnings as a result of interest rate swings, the company reported a $0.1 million net gain on the difference between the fair value of investments which support certain liabilities and reported reserves,” BF&M added. A $2 million gain, compared to a $1.2 million gain in 2016, was reported on the company’s other investments. Commission and other income increased from the prior year by 10 per cent to $22.4 million. The insurer said 2016 hurricanes continue to negatively impact commission income this year. But higher levels of proportional reinsurance ceded and profit share reported on non-property business offset the impact. Short-term claims and adjustment expenses increased 2 per cent to $12.3 million. Life and health policy benefits decreased by 26 per cent to $55.9 million. “Life and health policy benefits” includes changes in life insurance reserves which increased significantly in the first half of 2016 compared with a much smaller increase in 2017. These reserve movements were primarily driven by differences in market interest rates over the respective periods. Operating expenses were in line with the prior year at $33.2 million.

2016. September 12. BF&M has reported net earnings of $13.2 million for the first half of this year. That is a $1.8 million improvement on shareholders’ net income, year-on-year. It also represents an annualized return on shareholders’ equity of 9.9 per cent. However, the company acknowledged that a large fire claim will be recorded in its third-quarter financial statements. BF&M insured the Ann Cartwright DeCouto Building on Front Street, which was gutted by fire on July 21. Regarding the financial results for the year up to June 30, John Wight, chief executive officer said the performance was “strong”. He added: “The core operating earnings were largely in line in the first six months of 2016, exclusive of fair value accounting for movements in the company’s investments and reserves, with the corresponding period in 2015.” About half of the company’s earnings were generated in Bermuda, while the rest came from its operations in 15 islands in the Caribbean. The split is also 50-50 between property and casualty business, and health, life, annuities, pensions and investment advisory services. BF&M has four main insurance operating companies. BF&M General Insurance Company, BF&M Life Insurance Company, and Island Heritage Insurance Company are all rated A (excellent) by AM Best, while the Insurance Corporation of Barbados is rated A- (Excellent). Mr Wight said “there is no domestic insurance group in Bermuda or the Caribbean with stronger ratings”. Gross premiums written for the period were $183.5 million, an increase of 1 per cent from the corresponding period in 2015. Equity attributable to shareholders at the end of June was $266.9 million. General fund assets totaled $1.1 billion, of which $113.2 million was held in cash and cash equivalents. Investment income for the six months reflected an $18.9 million increase in the value of investments for the period on falling US interest rates. The company said this interest rate decrease positively impacted the fair value of extensive fixed income portfolio. Offsetting this was a $21.6 million increase in the value of life and health policyholder benefits as a result of an asset liability matching policy which looks to limit volatility of reported earnings as a result of interest rate swings. BF&M said commission and other income was in line with the prior year at $20.4 million. Short term claims and adjustment expenses increased 14 per cent to $12 million due to increases in reported motor and miscellaneous accident claims as well as more unfavorable development on that group of claims compared to the prior year. Life and health policy benefits, which are recorded at fair value, increased by 64 per cent to $75.7 million, primarily as a result of the previously mentioned interest rate decreases and the BF&M’s asset liability matching policy. The increase can also be attributed to higher local health claims reported in Bermuda. Operating expenses increased by 4 per cent to $33.3 million.

Manx Financial Group plc (MFG) holds 1.7 million shares in London-listed Billing Services,  a provider of clearing and settlement, payment services and financial risk management solutions.

2018. June 1. Binance Holdings Limited undertook to provide, in a memorandum of understanding (MOU) with the Bermuda Government, up to $10 million for training and another $5 million in investment in Bermuda-based blockchain companies.

2018. April 27. The Premier today hailed a “historic” day for the island as he signed a memorandum of understanding with global cryptocurrency trader Binance. David Burt signed the MOU with Zhao Changpeng, the chief executive of “the world’s largest cryptocurrency exchange”. Mr Burt said: “This Government promised to usher in an era of business development that, at its core, would diversify the Bermuda economy. Binance plans to develop a global compliance base here in Bermuda that would create 40 jobs, at least 30 of them Bermudian. Binance will spend up to $10 million on training for Bermudians in blockchain technology development." The trading company will also make up to $5 million available for investment in new Bermudian blockchain business. Mr Burt said the deal was “a vote of confidence in Bermuda and the leadership of this government”. The announcement came as MPs prepared to return to Parliament to debate the Companies and Limited Liability Company (Initial Coin Offering) Amendment Act 2018. The Bill was designed to create a regulatory framework for digital currency business based on the island. Mr Changpeng said that Binance’s research had shown that Bermuda was becoming “one of the leading regulatory bodies for virtual currency”. He added: “We think the Bermuda Government and regulatory body are one of the most approachable, reasonable and forward-thinking on the planet.” Mr Burt’s full statement was: The pace of technological innovation moves in today’s world has challenged established norms of doing business. The new normal demands that those who would participate in this evolving space are equally as innovative, flexible and immediately responsive to the requirements of doing business. This Government promised to usher in an era of business development that, at its core, would diversify Bermuda’s economy and provide opportunities for Bermudians to be more than spectators to economic success. A key element of our vision is to partner with those investors who share our goal of using the development of their business interests as a means by which to provide that economic success to Bermudians who have for too long been sidelined. Today, I am pleased to announce such a partnership. The Binance Group is the world’s largest cryptocurrency exchange and an international leader in digital exchange development and fintech, with a market capitalization of $1.3 billion. Through the Binance Charity Foundation, the Group is committed to improving education, creating awareness in the development through the use of blockchain technology. Binance Labs are incubators to encourage greater innovation and scope for future investment in a variety of projects. Binance has decided that their goals align with our aims and objectives to provide a leading, well regulated jurisdiction, ideally suited to the growth of the fintech industry. And so today, we are pleased to sign a Memorandum of Understanding that sets out the beginnings of a partnership that I am confident will benefit the people of Bermuda. Through this partnership Binance proposes to:

• Develop its global compliance base in Bermuda, creating at least forty (40) jobs in Bermuda, with at least 30 jobs for Bermudians;
• Through the Binance Foundation sponsor university-level training for Bermudians in blockchain technology development and compliance in an amount up to US$10 million;
• Through Binance Labs make up to US$5 million available for investments in new Bermuda based blockchain companies;
• As soon as practicable, develop a Digital Asset Exchange in Bermuda subject to all required legal and regulatory processes;
• Work collaboratively with the Government of Bermuda and all necessary oversight agencies in the development and improvement of a robust legal and regulatory framework.

This is an exciting, tangible development which has come as a result of this Government’s clearly manifested leadership in this area. In every meeting we make clear to potential investors that we have a reputation for sound regulation and that our approach in this new area will be no different. Binance have been equally as clear that they want to work with us to promote that transparent and well regulated environment as their business’ success depends on these very same factors that have served Bermuda so well. I am pleased to be joined by Changpeng Zhao, the CEO of Binance and Ying He, the co-founder of Binance and I wish to thank them and their team for their vote of confidence in Bermuda and in the leadership of this Government as we continue our aim to bring economic development to Bermuda and to make Bermuda the centre for the future of the blockchain world.”

2019. May 16. A digital asset business linked to diamonds that is said to have attracted millions of dollars in pre-orders from institutional investors, could be cleared to transact with its token and exchange by the end of this month. That is according to Cormac Kinney, chief executive officer of Diamond Standard, who spoke last week at a high-profile finance, economics and thought leadership conference in Las Vegas. Yesterday, Bermuda-incorporated Diamond Standard Ltd announced the appointment of James Campbell as its chief financial officer. He has also been named CFO of sister company Bitcarbon Technologies Ltd, which last year advertised for more than 20 positions in Hamilton. The company said it will start recruiting for ten to 12 positions in Bermuda during the coming months, with further positions to be filled later in the year. Diamond Standard is building an electronic diamond exchange in Bermuda. Mr Kinney, the founder, is a celebrated American entrepreneur and software designer with a lengthy track record in successful start-ups and technology-orientated business. His inventions have been cited in nearly 4,000 US patents. At the Salt Conference in Las Vegas last week, Mr Kinney appeared on a panel where he discussed the concept of the Diamond Standard coins, which contain an equal value of diamonds and feature an internal wireless encryption chip, a Bitcarbon Technologies-issued bitcarbon digital token for online trading. Among its proposed uses, the coin can act as collateral to borrow money or asset-back a smart contract, such as a down payment on a purchase. The token is said to be compatible with every blockchain programme. Mr Kinney said more than 90 per cent of the company’s initial orders have come from institutions that have never owned a digital asset. He said the majority are multi-trillion-dollar investment managers and ETFs. He added: “We have a lot of institutional investors in the equity of the company that also helped us with pre-orders. We now have several hundred million in pre-orders. We can’t actually launch. We’ve chosen to be regulated and our tokens and our exchange are both regulated by the Bermuda Monetary Authority, so we can’t actually transact for about one more week.” As of yesterday Bitcarbon and Diamond Standard were not listed as licensed entities on the BMA website. Mr Kinney has been featured in many publications, including Fortune and Forbes. He is the inventor of the heatmaps, which graphically depict financial market information and have been used extensively on Wall Street and beyond since the 1990s. He has raised venture capital from the likes of Intel, Deutsche Bank and Bank Stearns. Meanwhile, in yesterday’s announcement of Mr Campbell as CFO of Bitcarbon Technologies and Diamond Standard Ltd, the company said he would lead its local expansion and liaise with the Bermuda Government and the Bermuda Monetary Authority. Mr Campbell, a Bermuda resident, most recently advised the Bermuda Hospitals Board, and previously was CFO of Counterpartylink Ltd, a financial data company based in Hamilton and the UK. He is said to have more than 30 years of financial and operational experience, particularly with technology and telecom start-ups. Bitcarbon is operating from temporary offices at 55 Par-la-Ville Road. Bermudian Heather Kitson is also a director of Diamond Standard in Bermuda. Mr Kinney said: “I am delighted to welcome Jamie to our management team. His impressive qualifications, and past success in leadership roles at technology companies, make him ideally-suited to the role. As a Bermudian financial professional, he is committed to developing the country’s role as a world-class fintech hub. He will guide our company’s growth in partnership with the BMA and BDA, while building our local team.” Mr Campbell said: “I am excited to join Cormac and the Diamond Standard team at this important juncture in their growth. The company’s unique offering — the first diamond commodity which is also a digital asset — is the kind of leading-edge fintech investment that Bermuda wants to attract with our industry-leading digital asset legislation and our first-in-class regulatory environment, and I look forward to driving its long-term success.”

2018. December 21. A total of 161 applicants based in Bermuda have applied for 27 jobs listed on a careers site for financial technology firm Bitcarbon, the company’s founder and chief executive said last night. Cormac Kinney, an American entrepreneur and software designer, said there had been 172 applications altogether for the posts listed on careers.bitcarbon.com. Mr Kinney added: “We are encouraged by the response thus far and look forward to beginning application reviews in the coming weeks. Our jobs require many of the same skills needed for careers in the insurance industry, such as arbitration, member services, financial accounting and risk management. Because of that, our hope is that extensive training won’t be required for the majority of the roles. Since Bitcarbon and the Diamond Standard Exchange have not yet submitted the final application for approval by the Bermuda Monetary Authority, I must restrain my natural enthusiasm to share more of our plans.” He was speaking after the Opposition leader claimed the country’s fintech sector had still to produce jobs for Bermudians. Craig Cannonier said a response by David Burt, the Premier, to a parliamentary question on the number of Bermudians employed in the area was “tantamount to zero”. Mr Cannonier earlier asked Mr Burt how many jobs had been created as a result of 44 incorporations of fintech companies in Bermuda. He also wanted to know the job titles and the number of Bermudians employed in the industry. A response to Mr Cannonier’s question was on the House of Assembly Order of Business for December 7 but the written answer he received was dated December 17. Mr Burt told Mr Cannonier then that job creation was a matter for the private firms involved and there was no obligation for the Government to collate the figures. He also said that the query did not seek information on “a question of fact within the official cognizance of the minister” as set out in House Standing Orders, the rulebook for the House of Assembly. Mr Burt added: “There is no means by which to properly determine a ‘direct result’ in this case.” He also directed the Opposition leader to a website for fintech firm Bitcarbon where he said “one such company has listed 27 jobs they intend to fill in Bermuda”. Mr Cannonier told The Royal Gazette: “The Premier has decided he’s not answering the question and uses a clause to essentially say that there is no means by which to properly determine a direct result in this case.” He added: “What Mr and Mrs Bermuda want to know is, where are the jobs? And this answer is tantamount to zero. Zero jobs have been created, but this Premier is not willing to be transparent, is not willing to be direct about the answers to this question.” Mr Cannonier added that Mr Burt’s suggestion to look at job adverts was also “not answering the question. This should be concerning to Mr and Mrs Bermuda. If this is the direction that we’re going, then the Premier has challenges on his hands. If we’re going in the direction of creating a third pillar, fintech, then it is incumbent on this government to keep its finger on the pulse of what’s going on.” Mr Burt told MPs last Friday there were now 52 financial technology companies licensed in Bermuda, but that they were held back by “complications to banking within this particular sector”. He said last night: “The Opposition leader may not like the rules in the House of Assembly, but they exist and apply to him like every other MP.” Mr Burt added that there had been “positive economic signs” over the past year, including new incorporations in international and island business. He added: “Where indicators are not performing as this economy needs them to, we are working with those sectors to repurpose and retool individuals for the jobs that will come in this economy.” Mr Burt accused Mr Cannonier of trying to “bash new companies before they’ve even had the chance to commence operations”. He added: “We committed to growing this economy for more and more Bermudians to participate and share in that growth and these incorporations are a critical step towards fulfilling that promise.” The Premier tweeted on Monday that Mr Kinney had visited the Cabinet Office. Mr Burt told followers that Mr Kinney discussed plans for the company’s Bermudian-based fintech business and encouraged Bermudians to visit the online jobs list. The positions advertised for Hamilton included receptionist, staff accountant, customer support managers and assistant to the executive team.

2018. February 6.  Blue Capital Reinsurance Holdings Ltd said it saw double-digit percentage rate increases during January renewals. Mike McGuire, the Bermuda-based company’s chairman and chief executive officer, said: “Following the significant industry losses experienced in 2017, we are pleased to report improved market conditions during the January renewal period. On average, loss affected business benefited from renewing rate increases of 15 per cent to 20 per cent while non-loss affected agreements benefited from rate increases of 3 per cent to 5 per cent, in each case compared to 2017 and net of expenses. The company anticipates generating an 8 per cent increase of fully converted book value per common share on a mean loss basis and 13 per cent on a median loss basis, inclusive of dividends paid in 2018.” As of January 2018, Blue Capital bound indemnity reinsurance contracts with expected total annual premiums of $27.8 million. Blue Capital offers collateralized reinsurance in the property-catastrophe market and invests in various insurance-linked securities.

2017. October 30. Blue Capital Reinsurance Holdings Ltd said its book value fell 28 per cent during the third quarter. The plunge was driven by a $51.9 million net loss for the collateralized reinsurer, driven by hefty catastrophe losses. The reinsurer is managed by Blue Capital Management Ltd, a subsidiary of Bermudian-based Sompo International Holdings Ltd, which is in turn a subsidiary of Japanese insurance giant Sompo Holdings. Blue Capital said its combined ratio for the third quarter — reflecting the proportion of premium dollars spent on claims and expenses — was 455 per cent. Earlier this month the company had estimated catastrophe losses of $57.5 million for the quarter. The $51.9 million net loss broke down to $5.93 per share. Blue Capital’s book value was $14.48 per share at September 30. During regular trading in New York yesterday, before the results were announced, Blue Capital fell 15 cents, or 1.14 per cent, to close on $13.Michael McGuire, chairman and CEO, commented: “The financial impact to the insurance industry from the third-quarter catastrophe events is estimated to collectively be above $100 billion and these catastrophe events had a meaningful impact on our results. Due to our strong risk management practices, active portfolio management and the leveraging of our partnership with Sompo International our losses from these catastrophe events were within our risk thresholds and our overall portfolio performed as expected given the magnitude of these events. Looking forward, we expect market pricing to improve during upcoming renewals and we have positioned the company appropriately in recognition of the changed market conditions.”

2016. August 2. Blue Capital Reinsurance Holdings has posted profits of $2 million, or 22 cents per share, for the second quarter of the year, compared with $5.5 million during the same period in 2015. Blue Capital’s earnings beat analysts’ estimates, as collated on Yahoo Finance, by one cent per share. Reinsurance premiums written for the quarter were $9.3 million, up $1.7 million on the same quarter last year. The second quarter’s premiums written benefited from $0.7 million of reinstatement premiums, compared to no reinstatement premiums in the second quarter of last year. Loss and loss adjustment expenses for the period were $6 million, compared to $0.1 million for the second quarter in 2015. Blue Capital said that was driven by a higher frequency of global catastrophe events, which included the Fort McMurray wildfires in Canada, storms in Texas and Europe and the Kumamoto earthquake in Japan. Adam Szakmary, CEO of Blue Capital, said: “The second quarter included a greater frequency of global catastrophe events and Blue Capital’s ability to generate a profit reflects our strong risk management and the benefits of maintaining a portfolio of diverse catastrophe risks. “During midyear renewals, our portfolio’s average price decline of approximately three per cent moderated compared to the five per cent decline experienced a year ago. Through our advantageous partnership with Endurance and the leveraging of our experienced underwriters, we were able to assemble an attractive portfolio during the midyear renewals.” General and administrative expenses for the quarter amounted to $1.2 million — $0.7 million less than the same period last year. That was attributed to lower performance fees based on reduced profitability.

2016. May 4. Bermuda-based Blue Capital Reinsurance Holdings Ltd posted a $5 million profit to beat Wall Street estimates.  The company, which offers collateralised reinsurance and insurance-linked securities investments, said the net and operating income was 57 cents a share, exceeding the 52 cents forecast by analysts tracked Yahoo Finance. Underwriting decisions, operations and other management services are provided to Blue Capital by Blue Capital Management Ltd, a subsidiary of Endurance Specialty Holdings Ltd. The company said book value per common share was $20.44 at March 31, 2016, reflecting a 2.7 per cent increase for the quarter and an 11.5 per cent increase over the past 12 months, each inclusive of dividends. Reinsurance premiums written were $17.4 million in the first quarter, a decline of $2.7 million, or 13.4 per cent, compared to the same period in 2015. The company said this was “primarily due to a shift in the composition of the business to a greater proportion of quota share reinsurance”. The combined ratio — the proportion of premium dollars spent on claims and expenses — was 52.2 per cent compared to 44.6 per cent in the first quarter of 2015. Loss and loss adjustment expenses for totaled $1.7 million, comprising $1 million in first-quarter quarter losses and $0.7 million from adverse development on losses related to the December 2015 UK storms. General and administrative expenses were $1.5 million, or $0.2 million higher than a year before, largely due to higher performance fees. Acquisition costs of $2.2 million declined 4.4 per cent from a year ago, as the transition to a greater proportion of quota share premiums led to reduced fronting expenses. Blue Capital declared a dividend of 30 cents per common share, which was paid on April 15, 2016 and a special dividend of $1.24 per common share which was paid on March 15, 2016. Adam Szakmary, Blue Capital’s chief executive officer, said: “Blue Capital’s strong results in a quarter marked by significant financial market volatility highlights the value of our strategy of providing investors with diversified access to the preferred traditional property-catastrophe market.” Blue Capital’s shares fell 3 cents to close at $17.45 in New York yesterday.

2015. November 4. Reinsurance firm Blue Capital posted profits of $4.4 million for the third quarter of the year. The specialist in insurance-linked securities (ILS) said that was equivalent to 50 cents a share. Reinsurance premiums written for the quarter were $5.9 million — a drop of $0.6 million compared to same period last year. The fall was attributed to premium reductions in the global market. Blue Capital president and CEO Adam Szakmary said: “Over the course of the year and the current quarter we continued to generate very attractive results, which remain largely uncorrelated to larger financial market volatility. “Blue Capital’s strategy remains focused on providing investors diversified access to the preferred traditional property catastrophe market, without adding underlying asset macro-correlation. The partial ownership by insurance and reinsurance firm Endurance, which acquired a stake in the company after it bought rival Montpelier, had enhanced Blue Capital’s shareholder value and its ability to survive tough market conditions. Partnering with an underwriting organization that has greater scale, an enhanced market position and a larger more diversified global catastrophe book of business improves Blue Capital’s ability to compete in an increasingly competitive environment.”

2015.  August 27.  Saw the net asset value of its ordinary shares increase by 1.9 per cent in the first half of this year, after accounting for dividends declared. The company had $212.9 million invested in Blue Capital Global Reinsurance as of the end of June. That represents all the company’s capital, excluding amounts retained for working capital purposes. In a statement, the company said it had benefited from a low level of loss activity during the first half of 2015. Montpelier Re Holdings, the parent company of Blue Capital Management, completed a merger with Endurance Holdings on July 31, 2015.

2019. January 31. Blue Capital Reinsurance Holdings Ltd made a net loss of $24.9 million, or $2.84 per share, for the fourth quarter. The net loss for the year was $28.6 million, or $3.27 per share. The combined ratios for the quarter and year were 308.8 per cent and 191.6 per cent. The increase in the combined ratio was due to a significantly higher loss and loss adjustment expense ratio. The fourth quarter’s loss and loss adjustment expenses of $33.2 million reflected 2018 losses related to the California wildfires and Hurricane Michael and additional estimated losses related to Typhoon Jebi, which occurred in the third quarter, and Hurricane Irma which occurred in the third quarter of 2017. Reinsurance premiums written for the current quarter were $9.1 million increasing by $2.4 million over the same period a year ago.

Since 1/4/1993. Bermuda Office, Front Street, Hamilton. A hedge fund administrator. In January 2012 laid off 20 accounting positions, with 39 employees remaining in Bermuda. According to a bank spokesperson, Bank of New York Mellon acquired PNC Bank’s global investment services business in July of 2010 and as a result “accounting functions have been consolidated” to their Orlando, Florida office.”

2019. July 19. Airplane manufacturer Boeing, represented in Bermuda by several Bermuda-registered companies, has announced it has set aside $4.9bn (€4.36bn) to compensate airlines for disruptions caused by the grounds of its 737 Max aircraft. The company announced its earnings for the most recent financial quarter would take a $5.6bn (€5bn) hit as a result and that its profit would be reduced by another $1.7bn (€1.5bn) in costs due to the aircraft’s lower production rate. Boeing said that it expects to pay out over ‘a number of years and take various forms of economic value’, and that increased production costs for the 737 Max will reduce margins for the next two quarters. Boeing continues to work with civil aviation authorities to ensure the 737 Max’s safe return to service, and these authorities will determine the timing of return to service,’ the company said. It added that it expects to receive regulatory approval to return the 737 Max to services in the US and other jurisdictions in the final three months of the year, but admitted that this was its ‘best estimate’. America’s Federal Aviation Authority (FAA) said it is ‘is following a thorough process, not a prescribed timeline, for returning the Boeing 737 MAX to passenger service. The FAA will lift the aircraft’s prohibition order when we deem it is safe to do so. We remain focused on safely returning the 737 Max to service,’ Boeing CEO Dennis Muilenburg said. ‘This is a defining moment for Boeing. Nothing is more important to us than the safety of the flight crews and passengers who fly on our airplanes. The Max grounding presents significant headwinds and the financial impact recognized this quarter reflects the current challenges and helps to address future financial risks.’ Boeing CFO Greg Smith added: ‘We are taking appropriate steps to manage our liquidity and increase our balance sheet flexibility the best way possible as we are working through these challenges. Our multi-year efforts on disciplined cash management and maintaining a strong balance sheet, in addition to our strong and broad portfolio offerings, are helping us navigate the current environment.’ Boeing said the production rate for the 737 Max will gradually increase from 42 per month to 57 per month next year.

2019. March 21. A Message from the Chairman, President and CFO of Boeing, sent to the Royal Gazette, Bermuda. " Dear Sir. We know lives depend on the work we do, and our teams embrace that responsibility with a deep sense of commitment every day. Our purpose at Boeing is to bring family, friends and loved ones together with our commercial airplanes — safely. The tragic losses of Ethiopian Airlines Flight 302 and Lion Air Flight 610 affect us all, uniting people and nations in shared grief for all those in mourning. Our hearts are heavy, and we continue to extend our deepest sympathies to the loved ones of the passengers and crew on board. Safety is at the core of who we are at Boeing, and ensuring safe and reliable travel on our airplanes is an enduring value and our absolute commitment to everyone. This overarching focus on safety spans and binds together our entire global aerospace industry and communities. We’re united with our airline customers, international regulators and government authorities in our efforts to support the most recent investigation, understand the facts of what happened and help prevent future tragedies. Based on facts from the Lion Air Flight 610 accident and emerging data as it becomes available from the Ethiopian Airlines Flight 302 accident, we’re taking actions to fully ensure the safety of the 737 Max. We also understand and regret the challenges for our customers and the flying public caused by the fleet’s grounding. Work is progressing thoroughly and rapidly to learn more about the Ethiopian Airlines accident and understand the information from the airplane’s cockpit voice and flight data recorders. Our team is on site with investigators to support the investigation and provide technical expertise. The Ethiopia Accident Investigation Bureau will determine when and how it’s appropriate to release additional details. Boeing has been in the business of aviation safety for more than 100 years, and we’ll continue providing the best products, training and support to our global airline customers and pilots. This is an ongoing and relentless commitment to make safe airplanes even safer. Soon we’ll release a software update and related pilot training for the 737 Max that will address concerns discovered in the aftermath of the Lion Air Flight 610 accident. We’ve been working in full co-operation with the US Federal Aviation Administration, the Department of Transportation and the National Transportation Safety Board on all issues relating to both the Lion Air and the Ethiopian Airlines accidents since the Lion Air accident occurred in October last year. Our entire team is devoted to the quality and safety of the aircraft we design, produce and support. I’ve dedicated my entire career to Boeing, working shoulder-to-shoulder with our amazing people and customers for more than three decades, and I personally share their deep sense of commitment. Recently, I spent time with our team members at our 737 production facility in Renton, Washington State, and once again saw first-hand the pride our people feel in their work and the pain we’re all experiencing in light of these tragedies. The importance of our work demands the utmost integrity and excellence — that’s what I see in our team, and we’ll never rest in pursuit of it. Our mission is to connect people and nations, protect freedom, explore our world and the vastness of space, and inspire the next generation of aerospace dreamers and doers — and we’ll fulfil that mission only by upholding and living our values. That’s what safety means to us. Together, we’ll keep working to earn and keep the trust people have placed in Boeing." Dennis Muilenburg, Chairman, President and CEO, The Boeing Company, Chicago, Il, USA.

2017. December 7.  Brit Ltd is to relocate its Gibraltar-based captive reinsurer to Bermuda. The international general insurance and reinsurance group, which is headquartered in the UK, said it expects to complete the relocation of Brit Insurance (Gibraltar) PCC Ltd by the end of the year. Brit already has an office in Bermuda, which it set up in 2013. Matthew Wilson, Brit, chief executive officer, said: “This is a natural move for us as we continue to expand our Bermuda platform, while it is also highly complementary to our continued focus on the US market.” And Mark Allan, Brit’s chief financial officer, said: “Bermuda is an important hub for Brit, and its combination of a mature regulatory environment, including Solvency II equivalence, and access to highly qualified and experienced people makes it the right home for Brit Re to support the Group’s longer term strategy.” A spokesperson for the company said the move will not involve any major change in staffing levels in Bermuda, although a top executive at the reinsurer is expected to relocate to the island. Welcoming the move, Ross Webber, CEO of the Bermuda Business Development Agency, said: “Once again this is a tremendous endorsement of our jurisdiction. It’s a recognition of the power, strength and reputation of our regulator, particularly following Solvency II. We all acknowledge that our reputation on the international marketplace is of paramount importance, and this sort of move from a world-recognized insurer is further endorsement of Bermuda as a unique, elite jurisdiction.” When relocated Brit Insurance (Gibraltar) will become Brit Reinsurance (Bermuda) Limited.

2017. May 10. A community project to renovate and redesign the old WindReach playground has been given a huge financial boost. Brit Insurance has pledged $50,000.

2018. July 6. Bermuda-based Brookfield Property Partners LP is in talks to buy Waterside Plaza on the East Side of Manhattan for about $600 million, according to people with knowledge of the matter. The property, which includes apartments, stores and space rented to the British International School of New York, is owned by Richard Ravitch, a former New York lieutenant governor and onetime chairman of the Metropolitan Transportation Authority. A deal has yet to be finalized and it’s possible it could fall apart, said one of the people, who asked not to be identified because the transaction is private. A Brookfield representative didn’t immediately return a call seeking comment. Ravitch, reached by phone, said he is in talks with numerous parties and that the property isn’t for sale. Brookfield has been stepping up its investments in New York commercial real estate. Last month, it agreed to acquire Vornado Realty Trust’s stake in 666 Fifth Avenue. Earlier this year, it spent $165 million for a residential development project in the Bronx.

2015. November 6. This property developer is to join forces with a Qatar investment firm in a massive $8.6 billion development in New York. Brookfield Property Managers has teamed up with the Qatar Investment Authority (QIA) to develop a five building, seven million square foot project in the west of Manhattan. Bruce Flatt, the CEO of Brookfield subsidiary Brookfield Asset Management, which will carry out the partnership development, said: “Brookfield has enjoyed a longstanding successful relationship with the Qatar Investment Authority and we are thrilled that they share our vision for this transformative project." The deal means that Brookfield has sold a 44 per cent stake in the development to QIA. QIA CEO Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani added: “We are pleased to expand our relationship with Brookfield and invest in this world-class project." This joint venture is an example of our strategy to invest in high-quality real estate with strong partners." it is also a further demonstration of QIA’s long-term confidence in the US market." The development will be bounded by 31st and 33rd Streets and 9th and 10th Avenues and feature a mixed-use development with offices, residential and retail space. The news came as Brookfield Property Partners unveiled its results for the third quarter of the year and announced Ric Clark as chairman and Brian Kingston as CEO. The firm reported funds from operations of $218 million — $19 million up on the $199 million recorded for the same period last year. Brookfield said the increase was driven by major acquisitions during the year, including an increased interest in London’s Canary Wharf and, through its participation in Brookfield-sponsored real estate funds, the acquisition of holiday centres Center Parcs in the UK and Associated Estates in the US. In addition, Brookfield’s office and rental operations had “positive same-store growth". Net income attributable to shareholders for the quarter was $193 million (27 cents per unit) down from the $978 million ($1.37 per unit) recorded in the same period last year. The firm said: “The decrease in the year-over-year result is mainly attributable to greater fair value gains realized in the third quarter of the prior year." Mr  Clark said: “Our financial results for the quarter were bolstered partly by revenues coming online from the new leases at Brookfield Place in downtown Manhattan, which will have a large impact on funds from operations in the fourth quarter and to an even greater extent in 2016.”

In late 2014 teamed up with the Qatar governments investment arm in a fresh multibillion dollar bid to take over the owners of London's financial district Canary Wharf. It and the Qatar Investment Authority put in an offer for Songbird Estates, valued at $4 billion, which controls the massive office and shop development built on the site of the former London docks. Brookfield and the Qatar Investment Authority already own a significant stake in the Canary Wharf Group, which operates the area, the second-largest financial district in London, or its parent company Songbird. Brookfield has a 22.08 per cent interest in the Canary Wharf Group, while the Qatari fund owns 28.6 per cent of Songbird. Ric Clark, CEO of Brookfield, said: "As long-term investors in Canary Wharf, we are pleased to be in a position to make this compelling offer to the shareholders of Songbird. It provides shareholders with the opportunity to realize the very significant increase in value that Songbird has experienced over the last year. The offer is being made as Canary Wharf embarks on an ambitious development program that will alter its risk profile." Last month, Songbird rejected a takeover fund by the two insisting that the $3.5 billion offer did not reflect the value of the company. The original bid of $4.62 in cash per share valued Songbird at around $3.47 billion, but Brookfield and the Qatar fund has upped the offer to $5.48 per share in cash 33.6 per cent above the share price when the original bid was announced. Brookfield is one of the worlds largest owners, operators and investors in property with investments in $95 billion in real estate and interests in 275 million square feet of commercial space globally around the world. The bid is the joint ventures final cash offer and both companies ruled out another hike, describing the bid price as full and fair. Songbird owns close to 70 per cent of the Canary Wharf Group, a controlling interest acquired in 2004 and delisted its shares. In June last year, Canary Wharf Groups real estate holdings were valued at more than $9.8 billion. Canary Wharf was once the centre of the largest docks in the world, but the introduction of containerization killed off the industry and the main port for London moved down the Thames River to Tilbury. The last dock closed in 1980 and the area remained derelict until it was turned into an enterprise zone, with the first new buildings in the office complex opening in the early 1990s. The area now features 35 four office buildings and nearly 700,000 square feet of retail space. Canary Wharf Group also controls development land for a further 9.8 million square feet of property in and around the estate, including 3.3 million square feet of higher-value homes. The oil-rich middle eastern state's Qatar Investment Authority already owns significant chunks of London's real estate, including the landmark Shard building, the luxury department store Harrods and the former Olympic Village in the east end of the city, built for the 2012 games. Brookfield was also the winning 2014 bidder for the shuttered Revel casino and hotel in Atlantic City, New Jersey, plans to reopen the property as it expands its investments in gambling venues. It won the bankrupt casino property with a $110 million bid in an auction. The deal adds to its holdings of the Hard Rock Hotel and Casino in Las Vegas and three other resorts, including the Atlantis Paradise Island in the Bahamas, which it acquired in 2011. Casino revenue in Atlantic City fell more than 40 percent to about $2.8 billion in 2013 from a peak of more than $5 billion in 2006. Battered by gaming competition in nearby states, Atlantic City has seen Trump Plaza, Caesars Entertainment Corp’s Showboat, Revel and the Atlantic Club close this year. Trump Taj Mahal may shut in November, leaving the resort city with seven casinos. Built at a cost of $2.4 billion, Revel was envisioned as a resort first and a casino second. Struggling financially after its April 2012 opening, Revel introduced a “Gamblers Wanted” marketing campaign last year. Its parent company, Revel AC Inc, filed for bankruptcy twice, and the resort ceased operations on September 2. When it opened, Revel, on the beachfront, was the first new casino in Atlantic City since 2003. Brookfield Property was spun off in 2013 from Toronto-based Brookfield Asset Management Inc., Canada’s largest manager of alternative assets, to pursue purchases beyond its traditional focus on office and retail real estate. Since the spin-off, Brookfield Property has expanded in rental housing and acquired Thayer Lodging Group, US industrial real estate, European distribution facilities and office and hotel assets in Australia. Brookfield Asset Management is a sister company.  It took advantage of the credit crisis to accumulate a stake in the once-bankrupt General Growth Properties Inc., the second-largest US shopping mall landlord. In 2013, the company raised $4.4 billion to buy commercial real estate around the world. The new fund, Brookfield Strategic Real Estate Partners, aims to make opportunistic investments in North America, Europe, Brazil and Australia.

Bermuda-based. Owns 16 percent of Western Wind Energy Corp in Vancouver.