Congress From its roots in captive insurance has emerged the "mighty oak that is the Bermuda insurance market'', Premier Jennifer Smith declared yesterday.

"The many brilliant people who live and work in Bermuda's fertile soil will flourish'' under the stewardship of the Progressive Labour Party, she told a huge gathering of insurers and reinsurers.

The Bermuda Government could be an agent for change when that was desirable -- and conservatism when necessary, she said.

"We will do our part to protect the system under which you operate. We will provide an environment which offers security, consistency and enthusiasm.'' Ms Smith spoke as she opened yesterday's 13th annual PricewaterhouseCoopers/Hawksmere Reinsurance Congress at the former Princess Hotel in Hamilton, now renamed the Hamilton Princess and soon to be renamed the Fairmont Princess.

Almost 200 insurers and reinsurers were present.

Ms Smith's comments were well received by an attentive audience, many of whom were curious to see the new Premier.

In full swing, the Premier proclaimed: "Bermuda is the incubator of the new world market.'' She added: "We encourage the transfer of creativity from private businesses to the public good. We will continue to provide a sound regulatory environment.'' The Premier then gave the conference a brief review of developments in the local insurance market over the past 12 months, which neatly summarised the broadened scope and size of the world's third most important insurance centre.

"It is our job to look after the fundamentals,'' the Premier said, adding: "Yes, we are a centre of innovation for new products, new ideas and new capital.'' The Premier heaped praise on Registrar of Companies Jeremy Cox, the third member of the family dynasty to take a leading Government role in the new Bermuda, and on Kymn Astwood, Mr. Cox's predecessor, who has now joined Arrow Reinsurance as its leader.

"We have the perfect paradigm in Bermuda for reinsurers, alliances and joint ventures,'' said the Premier, citing as an example the newly-formed $300 million reinsurer Intrepid Re, a joint effort by Bermuda's ACE Ltd., Aon Corporation of Chicago and Britain's Royal & Sun Alliance.

"Bermuda not only attracts investors but the cream of (reinsurance) personnel,'' Ms Smith said, in a speech that could have been written for her by anyone at the top of the Island's business community, or of the United Bermuda Party, for that matter.

"Government is very pleased that persons of such character choose to relocate to Bermuda,'' the Premier said.

Citing as another example of the new paradigm the XL capital-assisted Latin America Re, which Ms Smith said was "effective in its market, and which punches above its own weight'', she concluded that "recent start-ups have provided little stress on our infrastructure''.