creation of a new health care risk division to be called Centre ReSource.

ZCI is going into the venture with Zurich Reinsurance Centre Holdings Inc.

(ZRC), of which ZCI owns a majority.

Ms Melinda Hamilton will head the unit, which will provide research and development of insurance and reinsurance products to address risk shifting opportunities created by the changes in the US health care environment.

Ms Hamilton's former job as senior vice president of ZRC's professional liability division is being taken over by Mr. Kirby Montgomery.

Mr. Steven M. Gluckstern, president and CEO of ZCI and ZRC, said "ZCI has created this R&D group as a part of a strategic effort to capitalise on vast opportunities in the rapidly changing health care environment.

"We see a significant need for innovative risk transfer products to serve the managed care marketplace. This dynamic industry also offers a number of unique opportunities to make investments and form strategic alliances in support of our core reinsurance and health care risk transfer businesses.

"In our view, this unit, fortified by Melinda Hamilton's extensive health care and reinsurance background, is well positioned to take advantage of the opportunities we see.'' Ms Hamilton said, "In today's health care industry the risks associated with medical costs are being shifted from traditional payers directly to health care providers. Many of these providers lack the insurance experience and the capital to assume these risks.

"We will focus on developing unique products and unique risk transfer mechanisms to fill the emerging needs of managed care units, HMOs, hospitals, physicians groups and other health care providers.'' Centre ReSource is a group, wholly owned by ZCI, formed to provide legal and actuarial consulting services to other companies in the ZCI Group. ZCI is Zurich Insurance Company's Bermuda-based holding company for their North American reinsurance operations, including Bermuda-based Centre Reinsurance, ZRC and other non-traditional risk businesses.