lawsuits and bad publicity recently. But in an exclusive interview with reporter Mairi Mallon yesterday, the risk manager's energetic new CEO revealed plans to change all that.

Bermuda-based Stirling Cooke Brown, the risk management company at the centre of a flurry of legal actions and negative news reports, has revealed that it may expand its operations on the Island.

At the moment the company has about 20 employees in Bermuda and 250 world-wide.

But a restructuring programme which is currently being worked on could see new company projects in Bermuda -- with spin-off jobs on the Island.

Stirling Cooke Brown's chief executive Stephen Crane told The Royal Gazette : "We have a mix here of Bermudians and expatriates and if I can implement my plans there would have to be many more bodies to staff these operations.

"I don't want to state this as a fait accompli, but if it goes ahead it will entail an expansion of our staff here in Bermuda.'' Mr. Crane took the helm at Stirling Cooke Brown in November and has been working on what he calls "challenges and opportunities'' faced by the company.

The business has faced huge losses and rising costs in fighting a number of lawsuits brought against the company in the field of worker compensation.

In his letter to shareholders sent out last month, Mr. Crane spoke of his first two months in office, and he talked of the unprecedented turmoil in the reinsurance market.

"One by-product of the turmoil in reinsurance markets is a plethora of legal actions, both litigation and arbitration, involving reinsurers -- most retrocessionaries -- who are challenging their obligation to pay losses under contracts pertaining to recent years.

" While Stirling Cooke is by no means the only intermediary directly or indirectly involved in these legal action the company has an involvement that is large in relation to its size. These issues have been a distraction and frustration to our people to say the least. Although we have endeavoured to manage the attendant media reporting (on) Stirling Cooke, there remains the possibility of further unfavourable press coverage of past events and issues.'' In the most recently released figures -- Stirling Cooke Brown's third quarter results for the period ending September 30, 1999 -- the company reported a net loss of $2.6 million, compared to net income of $4.1 million for the same period in 1998.

Net income for the nine months was $2 million, compared to $12.1 million the year before and for the nine months diluted net income per share was 21 cents compared to $1.23 a year earlier.

The company at the time attributed the poor results to increasingly competitive conditions in insurance markets and on-going litigation costs and advisory fees relating to the restructuring of the company, which amounted to $6.6 million for the first nine months alone.

During this volatile time, the 52 week low has been $1.00, the height $15.50.

Yesterday shares were trading at just over $2.

Stirling Cooke Brown, which through subsidiaries provides risk management services mostly to US-based small and mid-sized businesses, is actively seeking to improve its image and as part of this Mr. Crane has made himself and his company more accessible to the media.

And Mr. Crane wants to put the past behind the company and move towards a brighter future.

And as a further measure to improve the business' credibility, Mr. Crane announced that it is to seek more non-executive board members.

He also revealed that he has been looking at a high-profile Bermudian to sit on the board.

Mr. Crane said: "It is important to have members on our board who are visible and have an impeccable reputation.

"A strong independent board is good for our company. It helps us align our goals with the shareholders, who the board represents.

"We are looking at recruiting as well a Bermudian individual from the insurance and reinsurance business.'' But Mr. Crane refused to be drawn on who this person might be, but admitted that he had already looked at certain individuals who had suitable credentials.

Restructing: Stirling Cooke Brown CEO Stephen Crane says the company "may need many more bodies'' in Bermuda in order to implement his plans. He is also about to appoint some high profile Bermudians to the board.