Bermuda reinsurers wrote nearly $34 billion in gross premiums in the first nine months of this year, a 39 percent increase over the prior-year period, according to data compiled by Benfield Group Ltd.

Contributing to the Bermuda reinsurers' premium growth was "the continued dislocation of the traditional market," said Chris Klein, head of reinsurer counterparty risk at Benfield in London. The financial problems of some European reinsurers, combined with some US insurance groups' withdrawal from reinsurance, have created "gaps in the market to be filled," he said.

Virtually all of the Bermuda companies showed year-to-year premium growth for the first nine months, and the newcomers to the market are growing the fastest, Benfield reported in its third-quarter analysis of Bermuda reinsurer results.

For example, Arch Capital Group Ltd.'s gross premiums for the nine months were up 155 percent, AXIS Capital Holdings Ltd.'s grew 130 percent and Endurance Specialty Holdings Ltd. reported a 115 percent increase.

Arch, AXIS and Endurance all were formed as the hard market gained steam in late 2001.

"It's the new companies showing the most substantial growth, which you would expect," Mr. Klein said, adding that 2003 is the first year the companies formed in late 2001 have been able to benefit from a full renewal season in which to market themselves.

Another significant development among Bermuda reinsurers in the first nine months of the year was an increased emphasis on casualty underwriting, Mr. Klein said. One key factor behind that trend is that market conditions for casualty underwriting are favourable in terms of pricing and conditions, while price increases for property catastrophe coverage are stabilising.