The Bermuda insurance industry is emerging from the September 11 attacks on the US in a much stronger position, according to Brian Duperreault, chairman and Chief Executive Officer of ACE Ltd.

Speaking to The Royal Gazette yesterday following the release of the insurance giant's third quarter results in which the company reported a net loss (excluding net realised gains) of $390.1 million, Mr. Duperreault said that Bermudian employees at ACE Ltd were safe in their jobs and the company continued to be committed to Bermuda.

He added that he was not surprised that so many companies were choosing to set up here in the wake of the attacks, as Bermuda was the place to do business.

He said: "Of course the tragedy of September 11 overwhelms everything else that has happened to us, certainly this quarter and for a long time."

He said that the important thing for shareholders was what was coming out of the tragedy of September 11, with prices going up and capacity going down already a marked trend.

He said: "The industry has suffered the largest loss it has ever suffered. Bermuda has suffered the largest loss that it has ever suffered.

"But is it stronger today, after the loss? I think it is. I think that is reflected in the share prices of the Bermuda insurance companies - they are all very good, above the levels that they were at September 11, I believe.

"So what does that tell you? It tells you that the market recognises that although this is a tragedy of unbelievable proportions, the Bermuda insurance industry is coming out of it in a very strong position. That is what the markets are saying and I think that is the important thing to emphasise, not just for our own employees, but for Bermuda and Bermudians in general."

The third quarter results for the company showed it took a hit of $558.8 million after tax ($636.9 million before tax) as a result of the September 11 tragedy. If the event had not happened, the company would have posted profits of $168.7 million for the quarter.

Mr. Duperreault said: "From our vantage point we are seeing a continuation of a hardening market. There was already a trend in the marketplace for prices to go up and for capacity to go down and the September 11 tragedy basically accelerated the pre-existing trend.

"So today capacity is very short and very difficult to get coverage. Prices are very high and for us what we did is we went out to the market and asked for more capital so we could satisfy the needs of the insurers, which are developing. And what I mean by developing is that demand is up.

What also happened as a result of the events is that people now see insurance as a necessity. That's new. In the past people thought about insurance as a necessary evil, a tax and now they see it for what it is which is a real benefit. As a result, they are asking for more. So, as a result, we are seeing our clients coming to us more often with more coverage requests and this is different from what I have ever seen in terms of a hard market."

When asked what he thought the impact of the events would be on Bermuda, Mr. Duperreault said: "I think certainly Bermuda is going to be affected by the world-wide slowdown in economies and tourism in particular has seen that downturn here. The insurance business is actually in a different position. As I said, we are an industry in demand and prices are going up. So I think from our own vantage point, we feel very good about the future. We feel secure in our own position and we are not worried at all about current events."

Mr. Duperreault did not rule out expansion globally, but was unsure as yet how this would affect Bermuda, adding: "It is hard to use positive in the same sentence with this tragedy, but I believe that our future is very secure and therefore the situation with our employees is also very secure."