join Bermuda's most heavily capitalised group of insurers, it was revealed yesterday.

CAT and Employers Reinsurance Corp. plan to set up the company to write finite and financial reinsurance and insurance.

The move was announced in outline earlier this month at the Monte Carlo Rendezvous de Septembre insurance conference, CAT president Charles Kline said yesterday.

"It will involve a Bermuda company, a new Class 4 size insurance company in Bermuda, subject to local regulatory approval,'' Mr. Kline said.

On capitalisation, Mr. Kline said in a Business Insurance article earlier this week that the company "will be of sufficient size to compete for any financial reinsurance transaction''.

Business Insurance said the company would be called Enterprise Reinsurance and will have offices in Bermuda and in a yet-to-be determined US location and will be an admitted US insurer.

Under Bermuda's new multi-licence system of insurance regulation, Class 4 company's must show minimum capital and surplus of $100 million.

Of the more than over 1,400 insurance companies registered in Bermuda, 16 are Class 4.

Employers Re will have a 30 percent stake in the new company, Employers Re business development manager Thomas Gybel said.

Other CAT shareholders will also be investors but Mr. Gybel declined to identify them.

CAT's investors include Zurich Insurance Group and Chubb Corp. and others.

Jon Roberts, formerly at American International Group Inc., where he was responsible for finite and financial reinsurance, will be the company's president and chief underwriting officer.

The company will have offices in Bermuda and the US and be an admitted US company.

Mr. Kline said the company could begin operations in a month. The two companies are also negotiating to form a similar company in Europe.