Bermuda subsidiary to ensure it has a physical presence in the world's largest catastrophe reinsurance market and so it can benefit from the Bermudian infrastructure, the company said yesterday.

The German-based group has set up Hannover Re (Bermuda) Ltd. which will write catastrophe business on a worldwide basis for the parent company.

The parent company, which said the subsidiary was officially launched at the end of March, said Hannover Re (Bermuda) Ltd. (HRB) will become the centre of excellence within the Hannover Re Group for property catastrophe excess of loss programmes.

The company said Hannover Re will concentrate its underwriting expertise for this particular line of business in this unit.

In addition, HRB intends to develop a proprietary catastrophe simulation model.

"The Hannover Re Group will be physically represented in the world's largest catastrophe reinsurance market and can benefit from the Bermudian infrastructure,'' a company release said.

The company said the new operation will be fully backed by the financial strength of the Hannover Re Group and has stockholder's equity of EUR 250 million (US$225 million).

HRB will be headed by Konrad Rentrup, who is to assume the position of managing director.

Hannover Re, with gross premiums of over EUR 8 billion (US$7.2 billion), transacts all lines of property/casualty, life/health, financial/finite-risk reinsurance and programme business.

It maintains business relations with more than 2,000 insurance companies in over 100 countries.

Its worldwide network consists of more than 100 subsidiaries, branch and representative offices in 20 countries.

US rating agencies Standard & Poor's and AM Best have awarded Hannover Re their second-highest ratings of AA plus (very strong) and A plus (superior).

Bermuda continues to attract new insurance companies and transplants from other domiciles. Some recent moves: 2001: Hannover Re , May 2: Opens Hannover Re (Bermuda) Ltd.

Scottish Annuity & Life Re , April 23: Moves company HQ from Cayman to Bermuda Hampton Re , March 29: Sets up in Bermuda Recent moves: Max Re opens for business in Bermuda 1999 Everest Re moves to Bermuda 1999 PXRE moves to Bermuda 1999