Aggregate Bermuda Composite investment income (as a percentage of premiums) more than doubled — from 9 percent in 2004 to 20 percent in 2007 — but the trend reversed in 2008. Investment income fell to 16 percent of net premium earned (NPE). This trend will continue in 2009, as lower investment yields impact full-year results in addition to carriers’ preferences for having a greater amount in cash and short-term investments on hand (albeit at lower yields) because of financial market uncertainty.
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