Financial Responsibility) market, with the latest US Coast Guard figures showing that Bermuda companies had more than 56 percent of the business.

The single largest player, as of mid-April, was First Line/SIGCo (The Shipowners Insurance and Guaranty Co. Ltd.) with 3,509 signed up, including nearly 2,700 dry cargo vessels.

Neil Clemens has told market brokers the figures confirm the company's "significant success'' in SIGCo's first 16 weeks of business since the company started up on December 28 to soon completely replace the First Line programme.

Mr. Clemens said, "SIGCo continues to provide the majority of new guaranties issued since 28th December, 1996. In addition, of those shipowners who have renewed guaranties to date, the vast majority of First Line clients, plus clients of Shoreline Mutual and other guarantors, have moved to SIGCo.'' First Line/SIGCo remains the leading guaranty provider for tanker vessels (706 or 53.7 percent) and expects to be the leading provider for dry cargo vessels by this summer.

The newest player is Bermuda-based Arvak, which just began in January. It is managed by Aon Risk Services and offers guaranties up to $395 million on a fixed premium basis.

Market dominated by local companies The scheme operates as an insurance company capitalised at half a million dollars through ordinary shares held in trust.

Arvak had provided a total of 134 COFR guaranties but Aon's Page Rouse said the new company is expecting improved market penetration.

She said, "The board includes numerous prestigious ship owners. The vehicle is a Bermuda-registered Class Two facility. We have been very busy in the last week, so we are going to see a nice increase in business from this week alone and probably next week.

"Our position is better than what the Coast Guard would have quoted.'' Shoreline is the oldest registered commercial provider, having started two years ago last December as a solution to the demand by the US Coast Guard for ships plying US waters to be able to prove before they arrive that in the event they are the cause of an oil spill, they had the financial wherewithal to pay for the clean up.

Shipowners continue to be attracted to the Shoreline programme, which at mid-month provided 2,084 COFR guaranties, up 13 percent from November.

A circular sent to members and brokers this week said, "Shoreline continues to be successful for a number of reasons other than its commitment to be the low fixed-cost provider of commercial guaranties.

"Shoreline is 100 percent owned by its ship owner members, as compared to the other commercial facilities which are owned by investors with capital and returns thereon to be repaid and serviced out of funds from these programmes.

"It remains the only facility to provide real coverage, i.e. a commitment to pay in the case of a claim without recourse to the shipowner or any other member. Consequently, there is no requirement for ship owners to provide onerous documentation, such as a power of attorney or letter of indemnity.

"Shoreline's programme has proven to be the leader in giving the widest coverage to shipowners to cover all eventualities including the costs of defending court actions. Such innovative thought process has subsequently been copied by other commercial providers.'' BUSINESS BUC