XL sells Primus shares

XL Capital and its affiliates have sold more than 250,000 shares in Bermuda-based Primus Guaranty Ltd. in the past week.

XL, an original investor in the surety guaranty insurer, started selling shares on August 15 and has since disposed of 254,993 shares at prices ranging between $11 and $12, meaning they were worth around $2.9 million.

XL remains heavily invested in the company, with a holding of almost $13.5 million shares, with the disposals amounting to less than two percent of its stake.

Primus subsidiary announced last week that it was deferring a $250 million offering of bonds until September, saying market conditions were not "optimal for completion of the offering on attractive terms".

Primus closed up 22 cents or 1.87 percent at $12 on the New York Stock Exchange yesterday.

The stock was floated last October at $13.50 and rose as high as $17.01 in December before sliding. Its low was $11.01 last week.

New Skies unit sold

A subsidiary of Bermuda-based New Skies Satellites Holdings Ltd. is selling its Australian unit for $10 million.

New Skies Satellites B.V. said it has entered into an agreement to sell its Australian subsidiary, New Skies Networks PTY Ltd., which owns and operates two teleports in Adelaide and Perth, Australia, to Multiemedia Ltd., a provider of next generation technology and communications services based in Australia, for US$10 million.

The transaction is expected to close in late October 2005.

New Skies shares, which have risen on reports Bermuda-based satellite giant Intelsat may buy it, closed up five cents to $23.69 on the New York Stock Exchange.

Delaware updates captive rules

The Delaware Captive Insurance Association has welcomed a new statute designed to make the state more competitive in attracting captive insurance companies.

The Delaware Revised Captive Insurance Company Act, which was enacted on July 12 and the subject of a ceremonial bill signing on Monday, substantially rewrites the state's original captive insurance company statute, which has been in effect since 1984.

It is designed to encourage the formation of new captive insurance companies in Delaware through flat, capped premium taxes, measured, responsible regulation and cost advantages. The legislation also outlines the allowable licensing of a variety of captive types, expanded choices in the legal form of organisation a captive may take, a wide range of allowable insurance coverages, flexibility on minimum capital and surplus requirements and investment opportunities.

"Delaware's new captive insurance legislation further positions the state as a pre-eminent business jurisdiction and offers captive insurance companies some distinct advantages," said Richard Klumpp, interim executive director of the DCIA. "In addition, it should be an engine for future economic development in the state. Captive insurance is a growing business worldwide, and this new statute makes Delaware extremely competitive with other leading international and domestic captive insurance jurisdictions. Everyone involved in this important modernisation deserves credit for a job well done."

Investors like Azure

Bermuda investors are expected to buy into a private placement of more than C$13.4 million in a Canadian company that develops hybrid electric and electric commercial and military vehicles and systems.

Azure Dynamics Corp. said yesterday it had entered into an agreement with a Boston-based institutional investment manager for the private placement of 13,431,500 common shares at C$1 each for gross proceeds of C$13.4 million. The company said the issue will be placed directly with the investment manager's clients in the US and Bermuda and is fully subscribed. The placement is expected to close on or about August 31 and is subject to approval by the Toronto Stock Exchange.