An article on page 29 of The Royal Gazette yesterday on ACE Bermuda quoted a company spokesperson as saying: "The whole industry is about to be deregulated.'' The story should have clarified the statement referred to Japan.

ACE Bermuda is reshuffling the ranks of its Island-based insurance operations.

A major division of the ACE Group, the local subsidiary is undergoing an immediate restructuring to stay on top of the group's expanded global operations.

ACE also revealed it is seeking to add another captive operation to its Bermuda fold. A company spokesperson said: "The whole insurance industry is about to be deregulated, which creates some new opportunities. We're just now looking at Southeast Asia, Japan and Europe as key areas to target for captives and rent-a-captives.'' And president and chief executive officer for ACE Bermuda Gary Schmalzriedt linked the manpower changes with the company's acquisition in July of new property casualty operations from the CIGNA corporation. Throughout the four months since he joined ACE, Mr. Schmalzriedt said, he has examined ACE Bermuda's position along with management and clients.

"Our goal is to maximise our substantial contribution to ACE's profitability,'' he said. "I am confident that this restructuring will provide the platform for us to achieve this goal.'' Japan is said to be high on the company's list for attracting new captive business, the ACE spokesperson said.

Insurance/reinsurance giant ACE currently has operating subsidiaries in almost 50 countries. By reorganising some of the Bermudian insurance departments, Mr.

Schmalrziedt said the local branch was better positioned "not only in the context of the Bermuda market, but in the context of a worldwide market.'' The company has traditionally prided itself on serving a diverse spread of clients.

The changes are: Mark Herman: currently senior vice president of professional lines, is now at the helm of excess liability; Patrick Mitchell, senior vice president of excess liability, will keep watch on ACE's relationships with reinsurance intermediaries and major direct writers as the new reinsurance coordinator; Larry Lombardo, currently executive vice president, assumes the new position of executive customer relations; Roger Gillett, senior vice president of business development, is taking the reins for the creation and management of a new captive operation at ACE Bermuda; Andy Gibbs, now chief financial officer, has taken the new appointment of chief operating officer.

ACE also advised that additional updates could be found at www.acelimited.com.

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Gary T. Schmalzriedt Larry Lombardo Patrick Mitchell Mark Herman Roger Gillett BUSINESS BUC