Bermudan insurers are looking to diversify their geographic markets and product offerings - and could be targeting Lloyd's businesses, according to a recent report in Insurance Day.

The report quotes Ian Clark, partner and leader of the insurance strategy team at Deloitte & Touch, as saying that, “We are hearing rumblings of Bermudan companies casting an eye over Lloyd's based businesses. They are looking for geographic and product diversification and there are a number of Lloyd's businesses that would meet the criteria. If you look at the Bermuda market historically, trends tell us that when the market is over capitalised and it is clear as the market stands that there is more capital in Bermuda than required to write the business.”

He continued, “If you look at the business volumes of the 2001 and 2005 waves of companies and the amount of capital compared to business volumes, there is a lot of fat there,” he said.