One of the world?s largest reinsurance companies with capital of $2 billion and gross premiums of over $2 billion is being set up in Bermuda.

According to a release from insurance giant White Mountains Insurance Group yesterday, which recently re-located to Bermuda, it is setting up White Mountains Re Group Ltd. as a holding company for its reinsurance operations.

This means that all the business Folksamerica Re, Fund American Re and White Mountains Underwriting with the newly acquired Sirius Insurance Group write will now go through Bermuda.

The company will be headed up by Steven Fass, who has been given the title of president and chief executive officer, and will be based in Bermuda along with some of the key management.

?White Mountains Re will rank among the top 15 reinsurance organisations in the world,? said a release from White Mountains.

White Mountains Re will offer lead capacity for most property, casualty, accident and health and marine exposures through Folksamerica Reinsurance Company, Sirius International Insurance Corporation and White Mountains Underwriting Ltd.

Program business is written through Sirius America Insurance Company with underwriting offices are located in New York, Stockholm, Chicago, Belgium, Miami, London, Connecticut, Bermuda, Hamburg, Toronto, Singapore and Dublin.

?With the Sirius acquisition, Steve has built a significant global business for White Mountains? said Ray Barrette, chief executive officer of White Mountains.

?As chief executive officer of White Mountains Re Group, Steve will make sure the operating companies continue the approach he developed at Folksamerica of conservative underwriting, careful capital management and opportunistic acquisitions. He and some of his key partners will now be based in Bermuda to oversee all of our reinsurance operations.?

Folksamerica Re will continue as the US reinsurance arm of White Mountains Re and Edward Stanco has been appointed president and chief executive officer of Folksamerica Re, replacing Steve Fass who has been appointed chairman.

Mr. Fass said: ?Ed is an outstanding professional with over 30 years of experience in the reinsurance field.

?At Folksamerica for the last two years, Ed, as senior vice president and chief domestic treaty officer of Folksamerica Re, has demonstrated both his technical skills and his leadership abilities. I am very comfortable about Folksamerica?s future with Ed at the helm.?

Michael Maloney and Michael Tyburski join Mr. Fass as the White Mountains Re holding company team serving as managing directors. Both were executive vice presidents at Folksamerica Re.

Mr. Fass added: ?Mike Tyburski and Mike Maloney are valued partners who have contributed significantly to the success of Folksamerica.

?Their knowledge and dedication will be invaluable to White Mountains Re.?