Bermuda-based insurer Ironshore is planning to double its business this year, says chief executive officer Kevin Kelley.

The privately-held company, now in its third year of operation, has expanded rapidly since setting up with $1 billion in capital early in 2007.

"I think we will continue and even accelerate our growth," Mr. Kelley told The Royal Gazette yesterday.

"The plan for 2009 is to double — or even more than double — the size of the company, in terms of gross premiums written. I think that's very achievable."

Ironshore's growth focus has primarily been on the North American market and it has been busily building its market share in different lines, through its US-based IronPro, IronHealth and IronBuilt operating subsidiaries.

Through its Bermuda platform, based in the Swan Building in Victoria Street, Hamilton, Ironshore writes property and casualty insurance.

The Bermuda office is also home to Iron-Starr Excess Agency, a joint venture with Maurice (Hank) Greenberg's company CV Starr & Co., which started selling catastrophic excess casualty insurance products from April this year.

Ironshore's Bermuda staff is likely to grow from its current level of more than 70 employees, as business continues to grow, Mr. Kelley said.

Mr. Kelley took over the reins at Ironshore from Bob Deutsch in December last year, having left his job as CEO of Lexington Insurance, an American International Group (AIG) company.

In the space of six months after his arrival another eight AIG executives, most of them with decades of experience, have joined him at Ironshore.

AIG, which has been bailed out to the tune of more than $150 billion by the US Government, has complained that rivals have gone to great lengths to lure away some of its best executives as the company goes through tough times.

Mr. Kelley denied that was the case with Ironshore.

"We are not looking to target companies per se," he said. "People want to join us. When the opportunity arises and you are able to hire talent that you know well, then I think you have to take advantage."

Certainly, the hirings from AIG have given the young company an injection of immense industry experience. They include Shaun Kelly, head of US operations; Tim McAuliffe, president of specialty casualty; Anthony Mammolite vice-president of US property unit; Edward Mazman senior vice-president, US property unit; Andrew Archambault senior vice-president, reinsurance; Susan Kostro vice-president, underwriting; Geoff Smith, head of excess liability; and Michael Warwicker, chief operating officer of Iron-Starr Excess.

Such talent is boosting the company's attraction to clients and bodes well for further growth, according to Mr. Kelley. "We think we will be able to attract more capital going forward, because we have good people in key spots," he said.

The economic downturn has had a mixed impact on the company's growth curve, but opportunities have arisen from it for Ironshore, Mr. Kelley believes.

The struggles of some industry giants have made many insurance buyers aware of the risks of giving too much of their business to just one or two major carriers.

"Economic activity is down throughout the world and that's a negative," Mr. Kelley said. "Financial markets have shown some signs of recovering, but there's still a lot of uncertainty.

"It's probably cost some policyholders and caused brokers to rethink how they place business. Some clients now fear that they could be caught with all their eggs in one or two baskets. So they want to spread those eggs around in different markets and that has created an opportunity for us."

Being a privately-held company is an advantage in the current uncertain market conditions, according to Mr. Kelley. It allows the company to be nimble and to respond quickly to market conditions.

As for the attributes of Bermuda as a domicile for an insurance company, he said the Island had a substantial and hard-working underwriting community and a good infrastructure for business.

"Bermuda is a major market and will remain so as long as clients see an advantage in it," Mr. Kelley said.

Asked whether he was concerned about the possibility of changes in the US tax code that could be harmful to Bermuda insurers, Mr. Kelley said: "I think that anything that's anti-consumer should concern not only me, but everybody else too.

"I think the current structure does benefit commercial policyholders and allows capacity to develop. The Bermuda model benefits the Bermuda economy and also creates jobs in London and New York, where our companies are paying meaningful taxes."

Mr. Kelley said Ironshore has seen rate increases of 15 to 20 percent in its property lines, and stabilisation in casualty lines.