Premier Jennifer Smith last night officially opened the multi-million dollar global headquarters of ACE, thanking the insurance giant for its commitment to Bermuda.

Ms. Smith declared the building open at a lavish champagne ceremony at the new Pitts Bay Road offices on the site of the former Bermudiana Hotel.

The pastel-coloured, 165,000 square foot building, whose foundations were laid in 1998, will now house all 160 ACE employees based in Bermuda and will be the nerve centre for global operations. Members of Cabinet and Parliament and the leader of the Opposition, Pamela Gordon joined with the great and the good of Bermuda and senior executives of ACE Ltd from around the world for the opening.

The office, which is built on a site next to its insurance rival XL Capital, which opened with similar fanfare earlier this year, was blessed by the Ven. Dr. Arnold T. Hollis of the Anglican Parish of Sandys, Deacon Joseph Morley of St. Theresa's Cathedral, and Rev. Malcolm Eve, Presiding Elder of the Bermuda Annual Conference of the AME Church before the official opening.

Addressing the guests before the opening in sweltering heat outside the Woodbourne Avenue main entrance, Brian Duperreault, chairman and chief executive officer of ACE Ltd. said of the new building: "I hope that you are all as pleased as I am at how well it turned out.

"It is unmistakably Bermudian in architecture. I believe that this new building is not only a new Bermuda landmark; it's also a symbol of the vitality of Bermuda's economy."

He said that three years ago, this site was occupied by a "once majestic but subsequently abandoned" hotel.

"It had become a decaying eyesore that was a blemish on our beautiful island. Today, two bright new office buildings stand in its place signifying Bermuda's pre-eminence in the global insurance and reinsurance community."

He said that Bermuda, an island of 60,000 people, was now the third largest insurance and reinsurance centre in the world, ranking ahead of larger economies with populations in the millions.

He said: "The ability of Bermuda to reinvent itself, to change and to adapt to new market forces is a testament to the successful cooperation between Government and business.

"We could not have built this building without the help from representatives of both the Government and the Opposition party who allowed us to buy the land and encouraged us to develop it. I know that I speak for both Brian O'Hara, the chief executive of XL Capital, and me when I say thank you to the Government of Bermuda, both present and past, for your support."

He said that ACE was a financially strong global organisation with its roots firmly planted in Bermuda.

"Our growth over the last sixteen years was based on merit and hard work and not some perceived tax advantage. This building is our global headquarters. It is a sign of our commitment not only to the Bermuda economy but to the Bermuda community as well."

He added: "In this new building, we will continue to move forward, training and developing our Bermuda workforce so that they can stand toe to toe with any of their peers on the global stage. We know that our investment comes back a thousand fold in healthy, well-educated and committed employees who enjoy their jobs and who feel they're respected and treated well."

He said that ACE's commitment was not only to the people it hires, but also to the community within which the company and its employees live.

He said: "We look forward to continuing to invest in the Bermuda community."

He said that it is often customary at the opening of an office building to give those guests some sort of commemorative gift, and in the spirit of investing in the Bermuda community, he said ACE Ltd. decided to mark this occasion with a "meaningful" donation to Pembroke Rest Home - a cheque for $10,000 to support their work in caring for the aged.

Permanent Secretary for Health and Family Services, Dr. Derrick Binns, and Vincent Ratteray and Linda Russell of the Pembroke Rest Home collected the cheque.

Mr. Duperreault thanked all those involved in the construction of the building - the contractors, designers and architects as well as the ACE staff involved in the project.

Then the Premier gave a short speech, celebrating both the architecture of the building and the commitment ACE showed to Bermuda and its people before cutting the green ribbon and declaring the building open.

At the champagne reception Tony Bari Jazz Trio and the Robert Symons Tropicana Steel Pan entertained guests and food was catered for by the Flying Chef.

At the end of the evening, H&H Gombey Troupe performed on the terrace and led the guests from the building.