...on the nature of international capital. Fitch must also believe that a relatively seamless transition to another jurisdiction is can be achieved given some social instability in Bermuda.
I have been to Bermuda. It is a lovely place for those with liquid capital...and a large boat...
In addition, Bermuda-based insurers tend to hold very little if any Bermuda sovereign debt or Bermuda currency. In addition, they maintain relatively minor investments in Bermuda banks and other Bermuda-based companies. While most Bermuda insurers have some level of deposits held at Bermuda banks, these amounts are generally quite limited. In addition, investment custodians are typically located outside of Bermuda. As a result of this very limited linkage of Bermuda-based (re)insurers to the island's fiscal issues and local economy, Fitch believes stress experienced by Bermuda would have minimal impact on the credit quality of its (re)insurers.
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