Bermuda-based Max Re Ltd. continued its move towards becoming a traditional insurer when it announced this week that it is launching a new business unit to provide excess general liability insurance.

The term "excess liability" refers to the insurance cover which a large corporation would take out to top up ordinary insurance policies in case of a major catastrophe or damages award.

If very high losses occur, the primary insurance policies would cover claims for regular liability, and losses in excess of those amounts would have to be paid by the "excess liability" insurance.

The excess general liability team will be led by new managing director and chief underwriting officer, Angelo M. Guagliano.

Mr. Guagliano was formerly employed by XL Insurance Ltd, who were originally founded to specialise in the excess liability field.

Max Re chief executive officer Robert J. Cooney said: "We see a tremendous opportunity to provide excess general liability coverage to larger public companies using an innovative yet disciplined approach.

"Our experienced excess general liability team will be capable of providing rapid underwriting responses and offering traditional excess and alternative risk transfer products," said Mr. Cooney, who was one of XL's top executives before forming Max Re.

Max Re announced last September that it was shifting away from a business model that once targeted high investment returns to use of more traditional insurance products.