$300-million reinsurance company planned for Bermuda.

EXEL is keeping secret the purpose of an extraordinary general meeting of shareholders on August 31, other than to say it is to "approve an investment''.

But The Royal Gazette has learned that the company is seeking approval to invest up to $60 million in Mid Ocean Reinsurance, a company in the process of being set up in Bermuda.

US broking firm Marsh & McLennan and investment bank J P Morgan are currently attempting to raise $300 million start-up capital for the company.

Mid Ocean Re. is expected to underwrite worldwide property catastrophe risks up to a maximum per occurrence limit of $30 million per insured and $250 million for any one geographical zone.

EXEL's president Mr. Michael Kevany would not go into details about his company's investment plans.

"We can't say anything about it until it has gone to the shareholders,'' said Mr. Kevany.

Speculation in the industry is that EXEL's chairman Mr. Ian Heap may be recruited to run Mid Ocean Re. Mr. Heap is a former head of EXEL's Bermuda subsidiary XL Insurance.

According to one source, this could lead to XL's boss Mr. Michael Kevany taking over from Mr. Heap as chairman of EXEL, with Mr. Brian O'Hara, currently Mr. Kevany's number two in Bermuda, becoming head of XL.