It's turning into a busy week for companies redomiciling from London to Bermuda - the latest is Lloyd's underwriter Hardy which has ended a lengthy period of speculation and decided its future lies in Bermuda.

The decision comes just days after giant investment management company Invesco, which has more than $500 billion under management, redomiciled to the Island.

Hardy Underwriting is a $200 million-capitalised insurance and reinsurance company and intends to be writing business in Bermuda by mid-2009, if not before.

Within hours of the announcement yesterday, Hardy chief executive officer Barbara Merry told The Royal Gazette the decision had been thought-through over the past two years and been taken only when the company saw there was more to be had from a switch of countries than purely a tax advantage.

"It was a question of whether we could write business in Bermuda that we would not have seen in London. If it was only about tax we would have redomiciled two years ago," she said.

"For better or worse we were being a bit 'precious' about it and so were not going to do it just for tax reasons but only if we could genuinely see business there that was not coming to London."

A number of Lloyd's insurers have jumped the Atlantic from London to Bermuda in recent years, including Amlin, Kiln and Hiscox.

The decision by Hardy may spur others in the UK capital to look westward, Ms Merry commented.

"We have developed a very detailed plan of where we want our business to go. Part of that plan is to have a platform in Bermuda. Most individual companies will be looking at our move (and Bermuda). It will be for them to decide what the tipping point is for them," she said.

"Bermuda has become a credible, secondary market."

Last month Hardy was given principle approval from the Bermuda Monetary Authority for its proposed redomiciling.

The mechanics of the switch have been laid out by the company and involve the setting up of a Class 3 reinsurer in Bermuda, to be called Hardy Re, which will underwrite reinsurance for Hardy starting in the first half of 2008.

During the next 18 months Hardy will set up in Bermuda a wholly-owned subsidiary that will function as a managing general agent. The new holding company, to be named Hardy Underwriting Bermuda Limited will acquire Hardy Underwriting. Shareholders of the current company will be given replacement shares of the new entity when the switch over occurs.

Hardy will continue to be primarily listed on the London Stock Exchange.

In the early phase of the switchover it is not envisaged that Hardy will have a physical presence on the Island, however that will change when the redomiciling is completed.

Ms Merry expects the company to start out by sharing office accommodation with its investment managers before expanding as it puts underwriting staff in place.

One of the reasons for Hardy's move is to tap into the Bermuda insurance market and seek more business in the US. The company CEO sees business opportunities in the property/casualty arena as well as potential to pick up business in marine and aviation insurance.

Hardy was formed in 1976 and this year its shares have been the second-best performing general insurance stock in the UK, it manages and participates in Lloyd's syndicates 382 and 38Twenty.

In a statement, the company said its directors view Bermuda as "an important complimentary market to London," and went on: "The directors also believe that the Group will be better placed to deliver its longer term plan if it is able to access the Bermuda insurance market and develops a platform for underwriting third party business there."