oNffering that would increase its total capitalisation to $100 million by the end of its first year of operation.

It is presently in talks with three major insurance and reinsurance companies.

Bermuda's insurance industry newsletter, Bermuda Insurance Update, has quoted Harrington chairman Mr. John Austin as saying that the company's formation represented a strong "vote of confidence in Bermuda''.

Harrington was launched this year to upgrade the service provided by the International Risk Management Group's (IRMG) Hopewell International pool.

Hopewell, a solvent company, was put into run-off July 1.

Mr. Austin said no other jurisdiction was considered when Harrington was formed. Early this summer, it was capitalised at $70 million by Swiss Reinsurance Company and Winterthur Swiss Insurance Company. Swiss Re owns 70 percent of IRMG.

Mr. Austin said, "Shareholders like Harrington's don't go putting $100 million into a new venture if they have doubts about its market and general environment.'' CEO of IRMG, Mr. Gareth Bradburn, said the new facility is to have its own underwriting and management staff.

Harrington president, Mr. Graham Brice, said that the Hopewell business portfolio that had been assumed by Harrington had the potential to generate about $100 million of property premiums and $6 million of marine premiums.

Harrington is expecting 20 percent premium growth over the first couple of years and Mr. Austin said, "It is writing property all risk, not just catastrophe, and there's no plan to go jumping into the property catastrophe reinsurance market.'' The company is concentrating on property, business interruption and some marine business, offering combined property and B/I capacity of $250 million MFL, with earthquake sub-limits.

Mr. Brice said, "The old days of putting reinsurance programmes together and retaining very little risk in Hopewell were drawing to a close.

"The problem with Hopewell, which was owned by 23 captives, was that we really needed more control over our own destiny as a reinsurance company, but that was not going to be achieved simply by putting a successor company together. We needed a different structure and we needed more capital.'' Greater net retentions will be possible with the new company, though it will not retain more than ten percent of its net worth per risk.