business development.

The company revealed that it has formed an "association'' with newly-formed New York-based Centre Financial Products.

CFP will have a core business of developing products that focus on the intersection between the capital markets and the insurance industry, said a media release.

Possible applications for CFP's products include financial futures used to hedge a company's catastrophic or pollution exposures, "synthetic reinsurance'', and the securing of insurable risks.

More specific details about Centre Re's "association'' were not available yesterday.

The president and CEO of CFP is Dr. Richard Sandor, who is regarded as the `Father of the Financial Futures', according to Centre Re's release.

Dr. Sandor, whose PhD is in economics, is the non-resident Director of the Chicago Board of Trade, where he is the chairman of the Clean Air Committee developing the first spot and futures markets in environmental contracts.

Dr. Sandor also serves as vice chairman of the Special Task Force on insurance futures and was instrumental in originating the concept and designing the contract.

He said: "I am excited about the wide range of possibilities in this market.

"The potential exists for these types of products to allow reinsurance companies to finance increasing amounts of risk exposures themselves while reducing their dependence on traditional catastrophic reinsurance.'' Centre Reinsurance Holdings president and CEO Mr. Steven Gluckstern said: "We're delighted that Centre Re will have the opportunity to work in conjunction with Dr. Sandor, the acknowledged leader in these types of derivative products.'' Mr. Michael Palm, president and CEO of Centre Reinsurance (Bermuda) added: "Richard's perspective and means of defining and evaluating risk are consistent with the innovative tradition of Centre Re and we are confident that this new company will open new horizons in the financial futures and capital markets.'' News of the new business formation came only a day after Centre Reinsurance Holdings announced that it was setting up another new company, Zurich Reinsurance Centre Holdings, which, through its operating subsidiary, is a traditional property and casualty reinsurer.

Mr. Gluckstern is relinquishing his operating responsibilities of Centre Reinsurance Holdings' reinsurance subsidiaries, while retaining his holding company positions.

Mr. Michael Palm, who, in any event, was largely responsible for the day-to-day running of Centre Re (Bermuda) has officially been promoted to president and CEO of that company, effective from March 23.

Mr. Laurence Cheng, currently chief financial officer of Centre Re (Bermuda) has been named its new chief operating officer.

Mr. Richard Smith, formerly special vice president of Centre Re Holdings has been named executive vice president and chief operating of Zurich Reinsurance Centre Holdings.

Mr. Palm said: "The change in leadership in no way reflects a change in our fundamental business focus or the importance of the finite risk concept of Centre Re.

"Along with our expansion into the traditional reinsurance market, we expect to continue the finite risk business strategy that led Centre Re to its tremendous success over the past five years.

"We believe finite risk applications in insurance, reinsurance and financial risk are growing at a rapid rate both in the US and internationally, and it is our intention to continue to be a leader in this market.''