Exel Ltd. and Bermuda reinsurer Mid Ocean Reinsurance Co. Ltd. on the heels of this week's announcement of a merger between the two firms.

Best said yesterday that the merger would create an organisation with more than $9.1 billion of assets.

The two Bermuda firms intend to combine their reinsurance operations and operate as XL Mid Ocean Reinsurance Co. Ltd.

Based on market capitalisation, the combined organisation will be one of the 15 largest US listed property casualty insurance companies.

The merged reinsurance operations will provide economies of scale by eliminating redundant technology and administrative functions. Best said, "Exel has a solid commercial and reinsurance market presence, and Mid Ocean Reinsurance is an established leader in the global reinsurance and insurance market.

"Through its investment in Lloyd's managing agency Brockbank Group plc, Mid Ocean offers such products as marine liability, hull and machinery, war and political risk and property catastrophe. As a result of the merger, Exel will gain a higher profile in the worldwide property-casualty market, as well as entry to Lloyd's via Mid Ocean's Brockbank Syndicate manager.

"The combined organisation will have an expanded capital base, which will provide the capacity to grow through acquisitions.'' Merger wins backing from analyst The companies would save about $15 million through cutting out duplication of public company activities -- boards, the filing of statements, and auditing -- and through redundancies, and consolidation of the companies' Bermuda headquarters and other offices. Exel is currently building new headquarters in Bermuda.

Since the merger announcement on Monday Exel's share price has risen $3 to $74.25, while Mid Ocean's has risen $10 7/8 to $74 3/16.

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