Hampton Re, Bermuda's newest insurer, expects its assets to be between $3 and $4 billion within the next five years.

This is according to Bill Walker, the President and CEO of the newly formed life reinsurer, which is based on Reid Street in Hamilton.

Speaking to The Royal Gazette before his company's official opening party last night, Mr. Walker said that he expected the company, after its first full year in operation, to have assets of between $500 million and $700 million after its first full year in operation.

And he expected corresponding premiums of between $100 million and $200 million and capital in excess of $200 million, and this to exceed $1 billion at two years.

"I've been in this particular business for 40 years and I'm supremely confident I can do it again," said Mr. Walker.

Mr. Walker, who was born in Atlanta, hopes to repeat the success he had at the helm of Hanover Re's US operations, where he worked from 1993 to the end of 2000.

He said: "They had $50 million assets, $25 million of which was capital and $15 million in premium in 1993. And this went up to approximately $1.5 billion in assets and in excess of $1 billion in premiums by the year 2000."

Hampton Re was set up at the beginning of the year, with the backing of blue chip bank JP Morgan and its investors.

JP Morgan owns about seven percent of the company and its private bank customers own most of the rest.

The idea to set up the reinsurer was JP Morgan's and they head-hunted Mr. Walker, 59, from Hannover Re in the United States to be the company's president and chief executive officer.

Mr. Walker, who lives in an apartment in Flatts during the week and returns to his wife and family in Florida at the weekend, said that after extensive research, he decided Bermuda was the best place to set up the fledgling company.

"The reason we came to Bermuda is the same one that has made it the financial centre that it is, with companies bringing in hundreds of billions of dollars each year. It is also the ideal regulatory climate with an excellent Government.

"We looked around, we looked at a lot of offshore places and Bermuda has a pristine reputation internationally and we are ourselves and international company."

The decision to move to Bermuda was made at the end of last year, and applications were made to the Government to set up business, with local counsel and accountants hired.

Mr. Walker said: "It wasn't difficult at all. Again I attribute part of the ease to our sponsor and and primary investor, JP Morgan. That and the authorities here know how to ask the right questions as part of the process of identifying real and legitimate enterprises."

The company will focus on block transactions in life reinsurance and already have about 15 to 20 transactions completed, mostly from the US.Mr. Walker added that, as far as he knew, his company would not be in direct competition with other reinsurers in Bermuda.

"We all have different business models. The only one that seems to be also focused on block life transactions is Max Re, and they have a radically different investment style."When asked if his new company would consider an IPO - Max Re announced earlier this month it was set to float - he said that if four or five years down the line the company needed additional funding, then it would consider the matter then.

The company is currently recruiting a controller and a chief financial officer and currently there is a senior vice president and actuary, chief operating officer and office administrator.