A new Bermuda-based reinsurer, capitalised with $1.5 billion, is expected to be up and running by next month.

The new company ? to be called Harbor Point Limited ? is expected to sell property and casualty reinsurance on a global basis.

Harbor Point is being backed by investments from private equity fund Trident III, L.P. and insurance giant Chubb Corporation, as well as investments by management.

The company, which will be formed once $1.1 billion from additional investors is in hand, has also inked a business agreement with Chubb. This amounts to Chubb transferring its continuing reinsurance business, including the right to renew contracts from January 1, to Harbor Point.

Chubb will retain the liabilities from reinsurance contracts already sold, leaving Harbor Point free of any legacy concerns stemming from prior-year claims.

The announcement brings the number of large reinsurers known to have plans to enter the Bermuda market since Hurricane Katrina to three. Katrina, the August 29 storm that ravaged the US Gulf Coast, is expected to leave insurers with their largest bill from any one event ever.

In total, Katrina could cost insurers and reinsurers up to $60 billion. In addition, September hurricane Rita and Wilma, which hit Mexico and Florida, this week, will wipe several billion dollars more off insurers? and reinsurers? balance sheets.

Earlier this month, announced that a private equity fund being set up by former Marsh & McLennan Cos. chief executive Jeffrey Greenberg and others was looking to base a new reinsurer on the Island.

And this week, it was revealed that retired ACE Limited executive Don Kramer had reached an agreement to take on the infrastructure of beleaguered Bermuda reinsurer Rosemont Re, which is now in run off, or ceasing to sell policies.

Mr. Kramer, the man behind Tempest Reinsurance, a property-catastrophe reinsurer set up after Hurricane Andrew in 1992, and others plan to set up a Bermuda reinsurer with a minimum of $750 million.

Reinsurers effectively sell insurance to insurers, to help them spread the risk in policies they?ve sold to corporations and individuals.

Harbor Point?s formation is pending regulatory approval from financial services regulator, the Bermuda Monetary Authority.

It will be managed by the current Chubb Re team, led by chief executive John Berger. Stephen Friedman, a senior advisor to Stone Point Capital, will serve as non-executive chairman.

Harbor?s co-lead investors, Trident III, is managed by Stone Point Capital, and was formerly the private equity arm of Marsh & McLennan. It has made numerous investments in the insurance and reinsurance industry through the years, including being a lead investor in AXIS Capital in 2001.

Under the terms of Chubb?s agreement, it will receive from Harbor Point a $200 million five year six-percent convertible note and warrants, equal to about 16.25 percent stake in the new company.

Trident III has agreed to invest $200 million in the new company.