Eighteen new insurance ventures incorporated on the Island during the third quarter 2002 and as with the previous quarter the bulk of those were new captive insurance companies.

Breaking down the captive incorporations, the last two quarters were virtually on par with 12 of the 19 second quarter incorporations being captives.

In comparison, the latest quarter saw 13 captive insurance ventures formed out of a total of 18 new companies.

Statistics released earlier in the year by A.M. Best showed that Bermuda - which has a history of being the front-running captive domicile - had retained its place as the leading domicile for captive insurance company incorporations.

The breakdown of new incorporations through the period ending in September, and according to the Bermuda Monetary Authority (BMA) Insurance Division records, showed that there were nine class one and four class two companies formed.

Class one companies are defined as single parent captive insurers while multi-owner captives are classified as class two companies.

Class three insurers or reinsurers must have a minimum capital and surplus of $1 million.

And the largest insurance and reinsurance companies fall into the class four category with upwards of $100 million in capital and surplus.

The additions in the last quarter followed the whopping number of insurance ventures - 74 companies - to set up on the Island after September 11 and through the first quarter of 2002.

As with the second quarter, the rise in captive company formations could follow the rate increases that continue to dominate in the insurance sector.

In contrast the number of larger insurance companies coming to the Island has slowed pace after more than a dozen set up during the fourth quarter 2001 and first quarter 2002.

In the third quarter of 2002, there were four class three companies incorporated and one class four company, French insurer d'Artagnan Re (Bermuda) Ltd.

Bermuda also saw only one class four insurer formed in the second quarter - Platinum Underwriters Co. Ltd. - but the company has yet to really get off the ground with several false starts in taking the company public on the New York Stock Exchange.

Platinum has cited poor market conditions as being behind its stalled initial public offering (IPO) but the company has now reported its public launch should finally come to fruition some time this month.