its Bermuda subsidiary by $100 million after an initial public offering in the United States.

On September 29, the company completed a successful IPO of 8.4 million common shares at $21 each, with 7.25 million of these being sold by the company, raising net proceeds of $135.7 million.

Since the IPO, the capital position of Sphere Drake Insurance (Bermuda) Ltd., the company's subsidiary in Bermuda, has been increased by $100 million.

This subsidiary will write a wide portfolio of marine and non-marine business worldwide, both direct and reinsurance.

Mr. David C. Long, a director and chief underwriter of non-marine treaty business in London, was recently appointed as the managing director of the Bermuda subsidiary.

The paid-up capital of Sphere Drake Insurance Plc, the company's UK operating subsidiary, has been increased to 100 million from 67 million.

The UK company received 20 million from its parent as its share of the proceeds of the public offering, while 13 million of its increased capitalisation came from its own retained earnings.

Mr. Ian Dean, president of Sphere Drake Holdings Ltd. and UK chairman andCEO, said: "By increasing the capital of our insurance subsidiary in the UK to 100 million, shareholders have indicated their long-term commitment to the London market. Additionally, this action will enhance our UK subsidiary's standing.

"Its solvency ration has significantly improved with this increase in capital and following the divestment of the UK motor business.'' He added: "While being fully committed to the London market, we have established a presence in the evolving Bermuda marketplace.'' Sphere Drake Holdings Ltd. underwrites international property and casualty insurance and reinsurance business through its two operating subsidiaries.