The Ministry of Finance has received firm assurances from senior figures in the Department of Trade and Industry (DTI) that a report, warning UK insurers not to rely on the reinsurance protection provided by some Bermuda reinsurance companies, does not exist.

The UK's leading insurance daily, Lloyd's List, and The Bermuda Sun last Friday published articles forecasting that the DTI was "taking the unusual step of issuing a public warning to insurers''.

Financial Secretary Dr. Walwyn Hughes has written to Lloyd's List stating that he considers the article in question to be "inaccurate''.

He said the DTI, regulator of the UK insurance and reinsurance industry, had confirmed that its discussions with the UK industry on all aspects of regulation are always confidential.

"We wanted to correct an unfavourable and misleading article,'' said Dr.

Hughes.

"The DTI doesn't conduct its business in public. That was made clear to us.

It was also made clear they have no plan to issue any public guidance on this matter. I wanted to make sure there is no intention on the part of the DTI to publicly issue warnings on the Bermuda insurance industry,'' he said.

The Ministry wrote to Lloyd's List, and not to The Sun because it "wanted to concentrate on where the main exposure would be''.

The letter is expected to run in today's (Friday) issue of Lloyd's List.

Director of Information at the Bermuda Insurance Institute, Mr. Roger Scotton said: "The insurance industry in Bermuda is extremely upset at the way it has been portrayed, and the question marks raised over the state of the market.

"The industry here works on a conservative underwriting capital and surplus ratio, and consists of all the top names, including Swiss Re and General Re, and others. They are substantial, gilt-edged insurers.'' The negative publicity has generated several calls from international media.

The DTI has told journalists there is no report about Bermuda's reinsurers, said Mr. Scotton.

He detects a tacit effort to undermine the reputation of Bermuda's insurance industry.

"People want to talk Bermuda down, because they consider it is doing too much business for its own good,'' said Mr. Scotton.