Over the course of 2021, Bermuda saw an uptick in deal activity, reflected by both a greater number of transactions but also by aggressive deal timetables. A wave of amendments to previous deals based on the phasing out of LIBOR (and its replacement by new reference rates - SOFR, SONIA etc.) unquestionably featured heavily in the motivating factors behind this trend. We also saw a noticeable increase in demand for debt products across certain industries. Most notably, in reinsurance, a number of asset managers - whose investment focus is in insurance-linked securities or collateralised reinsurance - found themselves seeking alternative sources of capital and increasingly took to debt to help fund renewals in this space. As a result, we expect that managers will make greater use of credit facilities and other debt products in this field and that this trend will continue into 2022
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