Texas-based Southwest Business Corporation is reported to have set up a new reinsurance company in Bermuda called SWBC Re.

And the company chairman said Bermuda was picked as the location for the new business because of its repute within the reinsurance market.

According to a report in the San Antonio Business Journal the company announced the move at the end of last week and said the new operation would sell reinsurance products and be reinsuring business from a variety of insurance partners and companies.

The newspaper reported company officials as stating Southwest Business Corporation had experienced a tremendous level of growth of the past three years.

"We felt that SWBC RE Limited was the next step in the diversification of SWBC," chairman Charlie Amato is quoted as saying. "We have offices in 27 states across the country and now in Bermuda. SWBC chose Bermuda because it's the most reputable location when it comes to the reinsurance market."

Southwest Business Corporation provides a range of insurance, mortgage and investment services to financial institutions, businesses and consumers.