BERMUDA Law and Practice Contributed by: Natalie Neto, Rachel Nightingale and Marah Smith, Walkers
Walkers Park Place 55 Par La Ville Road Hamilton HM11 Bermuda Tel: +441 242 1500
Email: info@walkersglobal.com Web: www.walkersglobal.com
1. Trends 1.1 M&A Market
ation gaps, giving private equity more opportu - nity for successful exits. The introduction of Bermuda’s corporate income tax regime should also be noted, which aligns with the OECD’s Global Minimum Tax Rules (the “GloBE Rules” ), with effect from fiscal years commencing 1 January 2025. In line with increased M&A and global activity, a number of global corporates have redomiciled to Ber - muda in order to take advantage of the benefits of being in a jurisdiction that does not impose corporate income tax, and it is expected that many (re)insurance entities will maintain princi - pal places of business in Bermuda. Bermuda has established itself as a hub for fin - tech companies over the seven years since the enactment of its digital assets business licens - ing framework, and the favourable market for investment in the US is expected to result in considerable investment in the sector, and to ultimately result in M&A activity as the indus - try grows and consolidates and opportunities for venture capital exits in start-ups arise. The resurgence of IPOs is expected to continue in 2025 given the US election results, confidence in the US market and the strong pipeline of deals
M&A activity remained consistent in 2024, main - ly in the insurance and investment sector, and is expected to increase in 2025 due to improved global economic conditions and a decrease in global political instability. Continued investment in the private equity space is expected, particu - larly in the insurance and technology sectors, as is a resurgence of IPOs. There have also been transactions in other sec - tors, such as shipping and energy, with a con - tinued prevalence of mid-market deal activity, which typically involve lower risk and lower lev - els of equity and debt financing. 1.2 Key Trends As Bermuda is an offshore financial centre and a leading domicile for (re)insurance, trends in Bermuda M&A tend to track those in either the US or European markets. 2025 is likely to see an increase of private equity investment in life and other insurance vehicles, given the stabilisa - tion of interest rates across the US and Europe, decelerating inflation, the resolution of several key national elections and the narrowing of valu -
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