registration statement with the US Securities and Exchange Commission for an initial public offering of 8.5 million common shares.

The offering is being underwritten by a group of underwriters who are represented by Smith Barney, Harris Upham & Co., Lazard Freres & Co. and Salomon Brothers.

The underwriters have been granted an overallotment option to purchase an aggregate of up to an additional 1.275 million common shares.

Sphere Drake underwrites property and casualty insurance and reinsurance in the London market, predominantly in the areas of marine and aviation and non-marine.

The company's local alternative risk transfer subsidiary is Sphere Drake Underwriting Management (Bermuda). It is headed by Mr. Jonathan Crawley.

It is anticipated that $150 million of the proceeds from the offering will be used to increase the capital of the Sphere Drake's insurance subsidiaries to enable them to write more business.

The balance of the proceeds will be used to redeem 3 million (approximately $4.5 million) outstanding preference shares and for general corporate purposes.