Bermuda's presence on US exchanges trod a chequered path during 2002 and into early 2003. Several of the new companies set up in the wake of September 11 successfully IPOed on the New York Stock Exchange (though for Platinum, it took more than one attempt), while mounting problems at companies such as Trenwick and Annuity Life & Re led to the NYSE sending out delisting notices.
Of the seven Bermudian companies with a market capitalisation above $1bn at the end of 2001, five saw a fall in their value. All, though, stayed above the $1bn marker, and were joined on the NYSE by Montpelier Re, Platinum and Endurance during the year.
Trends in insurance stocks
The downwards trend of the S&P 500 continued apace during 2002, with a drop in value of 30.7% over the course of the year. The chart showing the share price movements of Bermuda-based US exchange traded companies shows the relative strength compared to the overall index. The eight depicted in the chart all outperformed the S&P 500 significantly, though the troubles at Annuity & Life Re, ESG Re and Trenwick led to overall falls in value of 83%, 90% and 93% respectively. All three have received delisting notices.
Changes in capitalisation levels at the end of 2002 varied considerably. The strongest winner was Arch Capital, with an increase of 97.2% over the year. Other notable increases were posted by Renaissance Re (up 42.3%) and PXRE (up 40.7%).
IPC increased in capitalisation by 5.5%, while PartnerRe fell 1.8%. While ACE and XL, the traditional Bermuda powerhouses, posted falls in capitalisation of 19.1% and 10.6% respectively, it was Annuity & Life Re (down 90.6%), ESG Re (down 90.1%) and Trenwick (down 92.9%) which brought up the rear. Overall, market capitalisation for the companies surveyed dropped 9.9% from the end of 2001 to the end of 2002.
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