Reinsurance regulators should mesh efforts ? bankers

LONDON (Reuters) ? The failure of one or more major reinsurers would be unlikely to destabilise the global financial system but regulators should coordinate their efforts to ensure reinsurers? resilience, a group of finance specialists said.

?We would recommend that reinsurance companies are regulated on a global, consolidated basis,? Walter Kielholz, chairman of Credit Suisse, said at the launch of a report into the sector by the Group of Thirty, a private organisation of senior bankers, central bankers and academics.

?The EU, the United States, Switzerland, Japan and Bermuda cover the vast majority of reinsurance firms. If those five jurisdictions would agree on a system of regulating reinsurance then I think the problem (of piecemeal regulation) would be solved.?

Amid recent scandals over financial risk products and following the costliest year on record for natural disasters, concerns have been raised about the health of the $170 billion reinsurance sector, which takes on risks that are too large or volatile for primary insurers, and its impact on the wider financial market.

But Kielholz, co-chair of the report, said even a loss of around 20 percent of global reinsurance capacity would be unlikely to cause widespread insolvencies in the primary insurance market and would have only limited impact on the financial system.

The report found that reinsurers assume a relatively small proportion of the risk taken on by the primary sector and has only limited links to the banking sector.

Butterfield Bank bought BMA building

The Bank of Butterfield is poised to move its private banking arm into the former home of The Bermuda Monetary Authority on Burnaby Street.

A Bank spokesperson said the bank purchased the building last year to provide additional space in Hamilton to expand its existing business.

The building is currently undergoing extensive renovations on its lower floors, although some trust business employees are working on the upper floors already. Renovations are due to be completed early summer at which time the bank?s private banking business will transfer over from the Head Office.

The BMA is currently set up in temporary premises on Reid Street and will move to its new Victoria Street headquarters in 2008 when tenant?s leases expire

Frontline still in talks with General Maritime

OSLO (Reuters) ? Bermuda-based tanker giant Frontline is keeping the door open for new takeover talks with US-listed rival General Maritime despite previous rejections.

?Frontline is engaged in the evaluation of potential candidates for acquisitions and strategic transactions,? Frontline said in a statement published by the US Securities and Exchange Commission.

Frontline noted that Genmar said on December 5 that it was not interested in a takeover by Frontline. There had been no contact since between the two companies, Frontline said.

?However, Frontline may attempt to reinitiate discussions with (Genmar) in the future, either through oral or written communications, regarding a possible business combination,? it said.

The Bermuda-registered group, the world?s largest tanker operator, that its stake in Genmar, of 3.86 million shares, had risen to 11.25 percent from 9.98 percent because share repurchases by Genmar had reduced the amount of outstanding stock.

Frontline also said it might buy more shares or sell out.

Island celebrates Customs Day

Bermuda joined the world yesterday in celebrating International Customs Day and Finance Minister Paula Cox lauded the role of the Customs Department in protecting Bermuda.

The event marks the anniversary of the first meeting of the World Customs Organisation over 50 years ago.

The Minister said the theme for this year?s event is safer world trade through security and facilitation.

?The Customs Department is one of the key agencies that fall under the Ministry of Finance and I see the celebration as an opportunity for the broader the community to focus on the solid work done by our Customs Department,? Ms Cox said.

Without the dedicated and sustained effort of this department the Minister said the economic and social stability Bermuda takes for granted would be placed at risk.

?The Customs Department works collaboratively with international agencies to enable a secure facilitation of trade and its acts a bulwark against commercial fraud and the illicit trafficking of narcotics and firearms.?

?While most residents are well aware of the revenue collection of the role of Customs, what is not known or widely appreciated is its role as guardian that protects security and facilitates legitimate trade.?

The Minister said close to 30 percent of Government revenues are collected by the men and women of the Customs Department and this translates into more than 200 million dollars in duty on importing and exporting goods.

?This money is used to pay for essential services like healthcare and education and the necessary maintenance of our modern infrastructure,? she said.

?The Customs Department also assists international trade through the provision of procedural safeguards that enable the import and export of goods with a minimum of red tape.?

Ms Cox said soon returning residents will be able to pay duty via the ATM which will aid their ability to process the payment of duty more quickly at Bermuda International Airport.

?The Customs Department as an effective and efficient enforcement agency fights revenue fraud and protects the Island from illegal and potentially harmful substances.?