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Bermuda CEO Forum: Mark Watson

02 July 2010

Mark Watson, CEO of Argo Group, gives his thoughts on the future of Bermuda.

Read more: Bermuda CEO Forum Mark Watson Argo Group

What is the biggest issue facing Bermuda's firms now?

Dealing with a soft market, declining investment income and a soft global economy. It’s rare that the bottom of our industry cycle coincides with the bottom of an economic cycle, but this time it does. So we have significant price competition on top of declining demand for our products and services. Managing through this time by maintaining underwriting discipline with growing quarterly pressure will remain a significant challenge.

With the likes of Flagstone Re and XL Capital redomiciling to Luxembourg and Ireland respectively, do you expect to see more firms leaving Bermuda and is this trend a concern?

I don’t think it’s a trend. Remember that XL was domiciled in Cayman, not Bermuda. I think what we should focus on is whether Bermuda continues as a significant market place and not whether it’s the domicile of choice for corporate...


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Poll

Catastrophe bond issuance was $4.3bn in 2011. How much new issuance will there be in 2012?

Less than $3bn
0%
$3bn-$4bn
43%
$4bn-$5bn
29%
$5bn-$6bn
14%
$6bn-$7bn
14%
More than $7bn
0%

Quote

If last year was the year of the cat, then this year could be the year of the debt crisis.

Mike Van Slooten, head of international market analysis at Aon Benfield