Over half the tanker certificates of financial responsibility (cofrs) issued have been guaranteed by two Bermuda vehicles, the US Coast Guard has confirmed.

The vehicles, First Line and Shoreline, represent 53 percent of the 1,116 tanker guarantees issued, senior insurance examiner Mr. Jeff Fredel, with the Coast Guard's National Pollution Fund Centre, said yesterday.

The 1,616 cofrs represent over 70 million gross tons.

Eighteen cofrs have been issued since May 24 when First Line had 528 tanker guarantees and Shoreline had 319 tanker guarantees but the new cofrs are all associated with guarantees from the two Bermuda vehicles, he said.

First Line, underwritten by Stockton Reinsurance Ltd. and promoted by Johnson and Higgins and Shoreline, managed by Shoreline Mutual Management (Bermuda) Ltd., a subsidiary of Mutual Risk Management, were both set up specifically to address the risk of pollution by oil carriers in US waters.

As of yesterday, the Coast Guard has issued 6,571 cofrs for various types of carriers. Twenty six percent are for tankers.

"First Line and Shoreline have issued a substantial number to tanker vessels.

In terms of the volume of carrying capacity the influence is substantial,'' said Mr. Richard Black, director of Stockton Re.

First Line has processed over 1,000 guarantees for vessels totalling over 32 million gross tons sourced through over 60 brokers.

About 22 million tons are in respect to tankers, he said.

Shoreline, which will hold its first board meeting on Monday, has 619 live cofr guarantees issued representing about 20.3 million gross tons, up from the 12.8 million tons at mid May, said Mr. Stephen Hannon, vice president and controller of Shoreline Mutual Management.

"The guarantees issued to tankers are a massive amount when one considers the tonnage,'' he said.

"We are very happy with the results.'' To comply with the US Oil Pollution Act 1990, vessels entering US waters as of December 28, 1994, were required to possess cofrs as evidence that they had coverage for potential clean up costs associated with oil spills.

Neither First Line of Shoreline guarantee tank barge or mobile offshore drilling units.

The two firms have chosen to concentrate on the tanker sector and, to a lesser extent, the dry cargo sector.

Both have a small amount of representation in the passenger, fishing and utility areas.

And both said Coast Guard numbers are immediately out of date because there is a lag between guarantees issued by the vehicle and cofrs issued by the Coast Guard.

But "very few of the ratios have changed recently,'' said Mr. Fredel.

At May 24, guarantees for 2,971 tank barges, about 75 percent of the total tank barge population, has been issued.

Other guarantee vehicles include; the Water Quality Insurance Syndicate, the financial guarantee option, self-insurance option, surety bond and others.

The most popular tanker cofr comes from the financial guarantee option. Other insurers, with 223 guarantees include; Bermuda-based Texaco captive Heddington Insurance, Ocean Marine Mutual P&I, Gyrosen Chuokai, Highlands Insurance, Sphere Drake and ILU.