A further 2.5 billion dollars is expected to be brought into Bermuda by new insurance companies which have yet to complete the incorporation process, Dr Andrew Brimmer revealed yesterday.

This will take the total amount of new capital from new insurance companies up to 9.5 billion since September 11, and give a total new capital on the Island of $13.177.

In his speech to members of Bermuda International Business Association, Dr. Brimmer did not reveal what companies would be incorporating.

He said: “During the last few months seven major insurance companies have been incorporated with more than $7 billion of new capital. Additional incorporations of major excess liability companies are pending which would bring the new capital capacity to $9.5 billion.”

New insurance companies have been flocking to the Island after the September 11 attacks on the World Trade Center and the Pentagon which have pushed up prices and reduced the amount of insurance and reinsurance available around the world.

So far the total capital from new companies is $6.9 billion and the total capital raised by existing companies is $3.677 billion.

The boom has led to more office space being rented out, and is expected to lead to about 200 new jobs. New employees will then rent houses and use the services and shops on the Island and are expected to bring a boost to the economy.

Dr. Brimmer said: “This development will spur the creation of new jobs in the sector, create demand for additional office space and residential accommodation and give a boost to consumer spending.”

The seven new companies are Arch Re Ltd, Axis Specialty, DaVinici Re, Endurance Specialty Insurance Ltd, Montpelier Re, Allied World Assurance and Goshawk Re.

In addition to the new insurers, existing companies have raised $3.677 billion in new capital, with ACE raising $1.15 billion, XL Capital $0.82 billion, Partner Re $0.4 billion, IPC $0.927 billion, Renaissance Re $0.3 billion and PXRE $0.15 billion.