rationalisation of its London operations.

But the group's chief financial officer in Bermuda, Richard Gray, insisted yesterday the shake-up would not affect its operations or offices on the Island "in the immediate future''.

Property/casualty, property risk excess and marine and aerospace reinsurance business would be renewed through Odyssey Re Bermuda for now. The rejigging of the group follows the recent acquisition of Texas-based TIG Re by Odyssey Re's parent, Fairfax, for about $840 million. A statement from the company said it had combined its global operations with TIG Reinsurance Co to create a company with a stronger balance sheet and book of business.

Odyssey plans major shake-up Odyssey Re London will be closed down as an underwriting entity immediately, and the alternatives for its lines of business are under review.

But the company emphasised the decision to cease its underwriting was supported by plans for an orderly, efficient and solvent administration.

And Fairfax -- the Odyssey Re Group parent -- stressed it was committed to ensuring the legitimate claims of Odyssey Re London policyholders were paid in full.

All future business in London will be funnelled through either the London branch of TIG Re or through Lloyd's via TIG Syndicate Management.

This will see clients placing business with TIG Re's London branch offered the benefit of its enhanced capital base and claims paying ability while those doing business with the Lloyd's entity will win greater security.

Odyssey Re executive vice president Mark Hinkley said the consolidation would create a "stronger new group''.

He said the company was strengthened by the increased size and depth of underwriting and the TIG's UK and Odyssey Re's operations did similar kinds of business.

The company was continuing to work out details of the restructuring including resolving staffing issues, he said.

In the US and Canada, Odyssey Re Group will operate primarily through the combined operations of Odyssey Re Corporation and TIG Re.

Odyssey Re Corporation will become a subsidiary of TIG Re and the consolidated companies will have shareholders' equity of $1.1 billion and statutory surplus of $950 million.

The names TIG Re and TIG Syndicate Management are set to be changed to clearly identify them as members of the Odyssey Re Group, which have combined capital and surplus of $1.7 billion.

Fairfax's financial resources include a market capitalisation of Canadian $6 billion and an asset base of Canadian $30 billion.

Last week Fairfax boosted its position by buying $1 billion of reinsurance against adverse loss developments.