American International Group yesterday unveiled full details of two new international insurance companies it has set up in Bermuda.

International Property Catastrophe Reinsurance Company (IPC Re) and Starr Excess Liability Insurance Company (Starr Excess) are now fully operational.

IPC Re is a wholly-owned subsidiary of newly-formed IPC Holdings, which is registered in Bermuda.

IPC Re will specialise in providing property catastrophe reinsurance worldwide, including personal and commercial lines, on an excess of loss basis.

The company's policyholders are expected to be major insurers and reinsurers and its business will be generated primarily through reinsurance intermediaries.

It may also take part in the property catastrophe retrocessional market and may write non-catastrophe related business in the property-casualty areas provided the terms are attractive.

IPC Re will not conduct any business in the United States.

IPC Holdings has fully paid-up capital of $300 million. AIG owns 24.4 percent of the company's equity, with the remaining shares being held by a small number of US and foreign investors.

AIG chairman Mr. M.R. Greenberg said: "The property catastrophe reinsurance market has experienced a severe capacity shortage since the unprecedented catastrophes of 1992 and we expect this supply-demand imbalance to continue for some time to come.

"Many participants in the catastrophic reinsurance marketplace have sharply reduced their capacity for accepting such risks or have withdrawn from the market altogether.

"AIG is uniquely positioned to sponsor a new company to provide needed capacity in this market.

"As the largest underwriters of commercial and industrial insurance in the US, AIG companies have a strong combination of expertise, relationships and knowledge of the property insurance marketplace.

"Our global presence and long experience with difficult risks worldwide should assist IPC Re in obtaining and underwriting such business.'' The president and CEO of IPC Holdings and IPC Re is Senator Joe Johnson, who has been an executive officer of AIG's Bermuda companies since 1954.

Other officers are: Mr. James P. Bryce, senior vice president, underwriting; Ms Mary E. McCoy, vice president, actuarial; and Ms Donna Mae Clarke, vice president, administration.

Mr. Bryce joined AIG in 1975 as an international treaty underwriter and held several underwriting positions with American International Underwriters and National Union Fire Insurance Company of Pittsburgh.

In 1984, he became senior vice president of Transatlantic Reinsurance Company, where he oversaw all reinsurance assumed for foreign and domestic operations amd later held senior positions with Transatlantic in Tokyo and Hong Kong.

Most recently, he was vice president of the reinsurance division of AIG Europe (UK) in London.

Ms McCoy began her insurance career in 1980 when she joined Liberty Mutual Insurance Company as an actuary.

She joined AIG in 1981 and for the past five years has been manager of the actuarial department of Lexington Insurance Company in Boston.

Ms Clarke, a certified public accountant, joined American International Company in 1988 and is currently manager of the Joint Venture department.

Starr Excess Liability Insurance company is a wholly-owned subsidiary of newly-formed Bermuda-registered SELIC Holdings, which is a joint venture between AIG and General Re Corporation.

Starr Excess will specialise in providing excess general liability insurance, excess directors and officers liability insurance and possibly other excess insurance at high attachment points.

The company will offer general liability coverage in excess of minimum attachment points of $50 million, with maximum policy limits of $50 million.

All coverage will be written ona claims-made basis.

Starr Excess's policyholders are expected to be principally large multinational corporations and financial institutions worldwide, with its business generated primarily through brokers.

Like IPC Re, Starr Excess will not conduct any business in the US. SELIC has total committed capital of $500 million, $100 million of which is fully paid.

The company may make additional capital calls on the investors, on a pro rata basis, up to the amount of each investor's capital commitment.

AIG holds 23.9 percent of the equity and General Re holds 10 percent. The remaining shares are held by a small number of US and foreign investors.

Mr. Greenberg said: "There exists a shortage of strong financial capacity in the property-casualty insurance market for the types of excess protection that Starr Excess intends to write and, looking to the future, this situation should intensify.

"Few insurers have the capacity to provide these higher limits of excess coverage at a time when large multinational corporations, both US and foreign-based, are finding that the amounts of insurance they have are inadequate to meet their growing risk exposures.

"Starr Excess is well positioned to provide capacity to meet such market needs.'' As with IPC Re, the president and CEO of both Starr Excess and SELIC is Sen.

Johnson.

Other officers are Mr. Joseph R. Wiedemann is senior vice president, marketing; Mr. Geoffrey H. Ashworth, senior vice president, underwriting; and IPC Re officers Ms McCoy and Ms Clarke.

Mr. Wiedemann joined AIG in 1983 and from 1984 to 1987 he was president of Lexington Insurance Company.

He became president and director of American Home Assurance Company in 1987 and chairman of American Home in 1992. He was elected a vice president of AIG in 1986.

Mr. Ashworth joined General Re in 1977 as a casualty facultative underwriter.

In 1983, he became casualty facultative branch manager in Seattle and, in 1986, was transferred to the Dallas office in a similar capacity.

He became a vice president of General Re in 1987 and, in 1980, was assigned to the New York office as casualty facultative individual risk manager.

Both companies will be based at AIG's current offices on Richmond Road, Pembroke.

Sen. Joe Johnson.