Omega Underwriting Holdings PLC said its newly formed subsidiary in Bermuda, Omega Specialty Insurance Company Ltd, has now started to trade following authorisation by the Bermuda Monetary Authority as a Class 3 insurer, AFX News reported.

Omega Specialty is capitalised at around 170 mln usd and is in the process of obtaining a rating.

Omega chief executive Richard Tolliday said Omega Specialty opening for business is an important step in Omega's development.

He said that over the past two months the group has seen further evidence to support its expectation of continued strengthening of the market throughout 2006 and into 2007.

Omega will be announcing its preliminary results for the year ended Dec 31 2005 on Monday March 27.