In figures just released, she said there were 1,149 licensed captives at year end in 2007, with assets of $88.8 billion in 2007. The overall rate of retention was 81 percent, with 57 percent of business being casualty coverage and 41 percent property coverage, she said.

Preliminary figures for gross written premium for 2008, for all captives, was $19.8 billion, compared to $19.4 billion in 2007 and $21.5 billion in 2006, according to the Bermuda Monetary Authority. Among the captives, 13 percent were from Europe, 58 percent from North America, and 8 percent were from the Caribbean and South America.

Alan Thompson, president and chief executive officer of the Bank of NT Butterfield and Son Ltd, said during a panel discussion following Ms. Cox's statements that he believes Bermuda has fared better than most other captive locales.

From a banking perspective, he said, "We've seen very little change. If you look at the U.S. market today, there's a lot of concern about residential mortgages." In comparison, he said that last year in Bermuda there was one foreclosure. The bank's mortgage portfolio, he said, "continues to be very solid."

So far, he added, "knock on wood, I think we've done fairly well, and a lot of that happens to be the insurance and reinsurance efforts."

Ms. Cox observed the world has been experiencing an "economic tsunami" that also has affected Bermuda. What is key, she said, are Bermuda's "two pillars," international business and tourism. She added that while she prefers to see the glass as "half-full," she recognizes there are challenges ahead.

Jeremy Cox, deputy chief executive officer of the Bermuda Monetary Authority, said the word describing Bermuda is "nimble" in all sectors. He said Bermuda "has always been able to weather the storm" and has built a solid foundation, from a regulatory and market perspective.

Bermuda, he said, is viewed as a stable jurisdiction able to withstand economic challenges. "It has shown its approach to supervision and that it is able to mobilize and to be prepared when things do turn around," he said.

On the regulatory side, Mr. Cox noted that Bermuda achieved a very high standard of compliance with the International Financial Monetary Review in 2007. He said that previously, in 2003, the score card wasn't as good and, as a result, Bermuda focused on closing the gaps.

Now, he said, Bermuda has had much success with the International Association of Insurance Supervisors, where he serves as the vice-chair of the reinsurance committee, vice-chair of the group supervisory committee and sits on other committees as well.

He added, "For such a small island–22 and a half square miles–we've done a tremendous job from a regulatory perspective, in my view, of matching up to the skills and the talents you see in the market."

Bermuda does have one challenge, Mr. Thompson said. He noted that in this environment there has been "heated political rhetoric" out of some places–much of which is "just wrong."

He said that while the facts about Bermuda are good, statements are being made that blame offshore jurisdictions nearly "for the whole subprime crisis."

As a result, there is "a lot of political rhetoric right now," he said. "And one of the challenges is making sure that the policy makers in other jurisdictions are acting on facts and not heated emotions."

He said that every offshore jurisdiction is different and they shouldn't be lumped together. "What does 'offshore' even mean anymore?" he asked.

Asked about Bermuda's ongoing challenges, Mr. Cox said, "Standards and shifting standards." He said that during the first wave of the banking crisis, regulators talked about stronger banking standards.

He said he now hears discussions about how to address some of the gaps identified by the financial crisis. "What we have to do is make sure that as the gaps are closed," more challenges aren't created that challenge Bermuda's success.

Another issue that needs to be addressed is the problem caused by the economy, Mr. Cox said. Because of cost-cutting, he remarked, "we've got to challenge ourselves–we need to do better with less."