Bermuda-based Attorneys' Liability Assurance Society (ALAS) has announced it will increase and emphasise its US operating entity ALAS Inc. in Chicago and the role of its senior executives.

Despite the shift in focus, the long-time Bermuda company - it set up here in 1979 as a mutual insurance company to provide liability insurance coverage to attorneys in the US - will remain on the Island, according to the company.

ALAS currently insures 259 US law firms and said it provides coverage to more than 53,000 attorneys.

ALAS spokesperson Susanne Shank told The Royal Gazette the Bermuda office would remain open and that business would continue to be written from here. She added that the shift in focus to its Chicago office was in respect to senior management only.

ALAS chair Donald Howell said: "The Board of ALAS has reviewed the company's operations and business model and has determined that as a mutual insurance company and an insurer of large US law firms, ALAS is better serviced by emphasising its US presence and the role of its senior management personnel in the US particularly with its member firms.

"The result of that decision is that ALAS will, over the next four years, transition the leadership of ALAS to its Chicago office and strengthen its senior management capability in the US," he said.

As a result of the decision, Kenneth Hammond, vice-chairman and CEO of ALAS Ltd. Bermuda, has decided to leave the company and seek other opportunities. Mr. Hammond had been with the firm for the past 15 years.

Mr. Hammond will however continue to serve as vice-chairman if ALAS through the end of the year.

Peter Watson, who is currently president and chief operating officer of ALAS Ltd. and a former senior partner of Price Waterhouse in Bermuda, will serve as interim CEO.

Meanwhile, ALAS said an active search was underway of a new president and CEO for ALAS Inc. in Chicago.