The new Bermuda reinsurance company, White Mountains Re Group Ltd, which has $2 billion in capital, could bring in more business to the Island and create more jobs for Bermudians, according to Minister of Finance Paula Cox.

Ms Cox this week welcomed the news that Bermuda is to be the home for what is expected to become one of the world's largest reinsurance companies, calling it a "significant development".

This week insurance giant White Mountains Insurance Group, which recently re-located to Bermuda, announced it was setting up White Mountains Re Group Ltd. as a holding company for its reinsurance operations with not just capital of $2 billion but also gross premiums of over $2 billion.

"We are both proud and pleased they selected Bermuda when they had the world to choose from," said Ms Cox, speaking from San Diego where she is attending RIMS. "We believe they made a wise and prudent investment and It is a significant development for Bermuda."

The newly formed company will see all the business Folksamerica Re, Fund American Re and White Mountains Underwriting with the newly acquired Sirius Insurance Group write will now go through Bermuda.

The company, which is expected to be in the top 17 reinsurers in the world, will be headed up by Steven Fass who has been given the title of president and chief executive officer. He will be based in Bermuda along with some of the key management.

"This is great news for Bermuda and it seems a very opportune time and most timely given the RIMS conference that we are currently attending," said Ms Cox, pointing out that for the first time there was a Bermuda day at RIMS with sessions for most of the day current to the Island and its business.

She pointed to the topics on Bermuda which were Bermuda: The World's Risk Capital (Parts I and II) and the Supervisor of Insurance speaking and then participating in a panel discussion addressing Bermuda's regulatory framework.

"Bermuda is a key player," she said. "Our focus is to ensure Bermuda continues to be a premier jurisdiction and that we continue to raise the bar."

She said that the Government believes it has the right balance with an appropriate regulatory framework that also seeks to ensure that the Island remains competitive and that Bermuda is seen as an innovator.

"Accordingly when we see existing business grow and new quality business come to our shores, this is a testament to the strength of the Bermuda market and our reputation, notwithstanding international media scrutiny," she said. "We pride ourselves on being an active global participant in regulatory standard-setting."

Ms Cox pointed out that Bermuda was OECD-compliant and has an effective and enduring partnership that works with the public-private sector.

She added: "Accordingly, this good news for Bermuda as a jurisdiction, good news for business and good news for the prospective local Bermudians who may make a career with this new entrant."

Bermuda has so far seen 17 new insurance ventures set up on the Island since the first of the year ? with the bulk of business activity being in the captive sector.

This is in line with figures from the first quarter of 2002, when Bermuda saw the same number of incorporations, according to the most recent data released this month by the Insurance Division of the Bermuda Monetary Authority.

But incorporation activity during these two periods pales in comparison to incorporations during 2002 which saw a large numbers of new companies set up in response to improved business conditions after the September 11 terrorist attacks left a void in capacity.

Some 74 insurance companies ? many of them the largest class four ventures capitalised with $100 million or more per firm ? quickly responded to the change in business conditions by getting up and running before the end of the first quarter of 2002.