More than half of the $30 billion of new capital earmarked for the global insurance and reinsurance industry since September 11 looks to be coming to Bermuda.

This is according to a breakdown issued by investment firm Morgan Stanley this week which shows $32.2 billion as the total of current and pending capital for the sector.

Estimates last year put the new capital coming in to the market at half that - $15 billion - but the flow of new capital has continued to grow with $3.5 billion in additional capital announced this year.

Of the $32 billion, as much as $11 billion has already come in to the Bermuda market. In addition, the Bermuda market has another, so far, $5 billion of capital pending.

Which companies are getting the new capital? Among the Bermuda companies on the list are both existing insurers and an increasing number of new companies set up in the wake of the void in capacity after September 11.

Among the already established Bermuda companies to get capital injections since September 11, the list includes: ACE Limited, Alea, Everest Re, Hannover Re, IPC Holdings, Partner Re, PXRE, Ren Re, XL Capital, Zurich.

The number of new reinsurance companies formed to take advantage of the shortage of insurance capacity in the wake of the September 11 terrorist attacks has also been highly capitalised. New capital has gone to: Arch, Allied World, Axis Specialty, DaVinci Re, Endurance, Goshawk Re, Montpelier, Olympus and Queens Island.

In addition to the new insurer, Aon Corp. added some property and reinsurance lines to its own underwriting unit, Combined Specialty Corp.

The Royal Gazette also understands that there are two new re/insurers setting up on-island: Michigan Re and Catlin Insurance. The amount of capital going to these new ventures will be in addition to the $32 billion.

Subsequent investigation have shown that there are more companies making moves to set up here.

Most have been set up following the catastrophe in New York in which insured losses are estimated at more than $30 billion. This disaster has made prices rise and after years of soft-market pricing, insurers and reinsurers have begun to see there is an opportunity to make money.

Insurers, brokers and equity firms are trying to take advantage of the higher rates by investing in start-up insurance companies. Most of the new companies are affiliated with existing insurers and most have been set up in Bermuda.

Industry equity analysts have said close alliances with insurers give new companies an edge over those not strongly allied.

Olympus Re, for example, has a quota-share agreement with member companies of White Mountains Insurance Group Ltd., such as Folksamerica Reinsurance Co.