The first full day of the second annual Bermuda Captive Conference, held at the Fairmont Southampton, was a success, organisers said yesterday. Total enrolment this year was in excess of 360, although only a few more than half that number had registered when the conference formally got under way at 10 a.m.

A captive insurance company is one that, essentially insures the risks of its parent or parent companies. Some larger captives also write third party business for non-related commercial customers.

Prior to the official start of the day, a meeting was held in a darkened conference room of the Bermuda Captive Owners? Association (BCOA), a nascent body that was mooted at last year?s conference.

An early morning transformer malfunction had cut power to the hotel, which was not restored until the conference was well under way in mid-morning.

Interest from captive owners having been made evident last year, the BCOA has formed a local company to represent the interests of the owners of Bermuda captives. This year?s president of the Association, Karl Zimmel of American beauty products manufacturer Alberto Culver, reported that the company was now in operation.

Bala Nadarajah, head of the corporate insurance practice at Attride-Stirling & Woloniecki, pro bono attorney for the association, reported that the company had been formed as a charitable enterprise, limiting the liability of its members to their $100 contribution.

A discussion followed on the goals of the association and a comparing of notes among members. Premier Scott formally opened the proceedings at 10 a.m. with an assured address of some 15 minutes. ?We shall always provide a welcome for captives,? the Premier told his audience.

Noting that the Island was between hurricanes, with Florence having visited and a possible call from Helene in the air for next week, the Premier said that Bermuda ?responds and adapts admirably to storms and hurricanes. Three years ago, we had Fabian, but the country was open for business within 72 hours,? he reported.

Captive business is Bermuda?s ?bread and butter?, the Premier said.

He commended the Bermuda Insurance Managers? Association (BIMA) and the Insurance Development Council (IDC) for their vision.

The Premier also doffed his cap to the Bermuda Monetary Authority (BMA) and its command of the ?ever-evolving international regulatory landscape?. The key to Bermuda?s approach, he said, is risk-based, acknowledging that ?ours is a unique industry with a unique business model in insurance,? in the Premier?s words.

?We trade in our reputation, and on that you can count,? the Premier concluded.

The morning?s first formal session was devoted to current issues and a regulatory update. Led by Philip Barnes, president of BIMA, the panel was composed of Alan Cossar, deputy chairman of the IDC; Jeremy Cox, who is now the executive director of the Bermuda Monetary Authority, as well as its supervisor of insurance; and Mr. Nadarajah.

A wide range of topics was discussed, with Mr. Cox outlining the need to more closely regulate the activities of, say, the giant reinsurers than the single-parent captive that insures only one client, its owner.

Concurrent sessions followed. One track addressed how to assemble a captive management team. Peter Reilly, senior vice president of William Gallagher Associates, explained, for those new to the world of captives, the various roles played by accountants, lawyers, captive and risk managers and the other professionals who, between them, form the basis on which a captive insurance company is operated.

Meanwhile, David Ezekiel, founder, president and managing director of International Advisory Services, one of Bermuda and the world?s largest captive managers, led a second panel discussion entitled ?Why is Bermuda Still the Leading Domicile??

Panellists Lanette Frostestad, director of analysis and risk management for McKesson; Keith Ryan, vice president and chief financial officer of Lincoln Re of Bermuda; and William Baxley, vice president, treasurer and assistant secretary of Freeman concluded that the answer is a blend of service, experience and creativity.

After lunch, further choices presented themselves. Some attended a ?Captive 101? session led by Brad Adderley, a partner in the newly renamed Appleby Hunter Bailhache. Panellists Shannon Lespere, deputy director for licencing and authorisations at the BMA; Brian Durrant, executive vice president, Aon Insurance Managers (Bermuda); and Jason Carne, a partner in KMPG Bermuda, outlined the basics of captive ownership and management for a good number of attendees.

The conference draws almost as many beginners as those already involved in captive companies; hence the twin-track approach to allow delegates to learn at their own speed.

The other afternoon session turned out to be a marathon on health care captives and the details of their operation.

Bermuda has more such companies that one might think, and in three separate sessions, strategic planning goals, joint operating agreements and working toward long-term success were discussed.

Bermuda had a series of captive conferences some years ago, but they petered out.

This revival has grown since last year and looks set to become an annual fixture.

A great deal of work by conference co-ordinator Michael Hardy and his team appears to be paying dividends for Bermuda?s oldest, and still core, insurance practice.