A UK-based consultancy specialising in run-off services has announced that it aims to buy out four or five Bermudian or US property and casualty insurers within the next three years.

Independent Services Group Ltd. has appointed two former directors of Singapore-based Whittington Group Pte., which acquires and manages insurers in run-off. Richard Whatton and Stephanie Mocatta, former chief executive of insurance markets and former business development director at Whittington, have joined ISG to head its leap into the market for acquiring distressed companies.

Mr. Whatton said that the company would look at "thinly capitalised" or "distressed" companies, not necessarily in run-off, in mainly US southern states such as Texas, Florida and Georgia.

"That is not to say we would not look at doing something in the North East, but companies down south are more interesting and there is less competition (to acquire these companies)," he added.

"We have spent the last six months analysing 2,761 companies and talking to interested capital providers, " Mr. Whatton said. "But we have not approached anyone yet," he added.

The company is targeting smaller companies <\m> with around $10 million in surplus <\m> although it will consider larger deals, according to Ms Mocatta. Funding will come from Independent Services Group's own resources, management and external capital advisors.

According to Ms Mocatta, four unnamed investors have already signed up, and can invest on a syndicated basis to allow for large acquisitions.

Mr. Whatton said that the US market was "untapped," and more attractive than the UK which is "saturated with people looking to buy," or Europe which he considered "green." "We may move back into these markets when the timing is right," he said.

Initially ISG would like to buy a complete company, which it can use to transfer or reinsure other portfolios of business.

Mr. Whatton said that ISG would "clean-up" any company it acquired by settling any significant outstanding claims or litigation, as well as improving reinsurance recoverables.