Bermuda-registered Max Re estimates it will receive gross claims from the World Trade Center attack of $5 million.

And the insurer's parent company, Max Re Capital, said yesterday that it will buy back up to $25 million of its outstanding shares.

Max Re said it expected the claims to be:"meaningfully" reduced by reinsurance recoveries and additional premiums on the contracts exposed.

A provision will be made for the $5 million gross claim amount in the company's third-quarter financial statements. The estimated claim amount is a result of a detailed review of each reinsurance contract providing coverage for the World Trade Center tragedy and dialogue with the client insurers covered by Max Re.

Max Re Capital Ltd., through its principal operating subsidiary, Max Re Ltd., offers customised risk financing solutions to life and health insurers, property and casualty insurers, and large corporations.

Yesterday the parent company, Max Re Capital Ltd., announced that its board of directors has approved a purchase programme to acquire up to $25 million of its outstanding common shares, the non-voting common shares of its subsidiary Max Re Ltd. and warrants to acquire either such securities. This repurchase authorisation is in addition to the company's $15 million repurchase authorisation of September 17, 2001, bringing the total authorised repurchases to $40 million.

The authorisation includes both open market purchases as well as private transactions from time to time. Securities purchased as part of the programme will be cancelled and available for reissue.