Last year's swell of new Bermuda reinsurers could wash over into this year with the prospect of six more reinsurers coming to market - with close to $3 billion in capital.

The Royal Gazette has learned that Bermuda-based First International Capital (FIC) is in negotiations to form a number of new reinsurance companies on the Island.

In an interview last week, FIC CEO and president Mario Torsiello said six opportunities are under assessment. Mr. Torsiello, who took over the FIC company reins last October, said of those: "four are in fast-forward motion."

Mr. Torsiello also revealed that the companies could be backed by up to $2.95 billion in capital.

Breaking this down Mr. Torsiello said two of the ventures could come to market with $1 billion each while the third was likely to have $400 million in capital and the fourth being backed by $350 million.

The firm is also looking at possibly establishing two "virtual" reinsurers each with $100 million capitalisation but which could be managed by existing Bermuda companies.

Last year's flow of new reinsurance setups followed a void in capacity after the September 11 terrorist attacks. So far, 11 new reinsurers have registered locally bringing capital in the region of $7.44 billion.

Mr. Torsiello was on the Island last week for the World Insurance Forum. Although FIC has its head office on Front Street, Mr. Torsiello primarily works out of the firm's New York office and also presides over the company's Dallas office.

FIC provides financial services to insurance companies and asset managers and its core business also includes the provision of merger and acquisition advisory, and raising of public and private equity capital.

In their advisory capacity, Mr. Torsiello said one of FIC's advantages is that it realises it cannot be "everything to everyone" and carefully guards against conflict of interest with its clients.

Although the firm's focus is not exclusively insurance, it is one of the company's core areas and Mr. Torsiello explained that he has 22 years experience in the insurance sector. And he added that he sees the next ten years as a ripe time for the sector.

An FIC statement reads: "We are one of the few, independent, privately held investment banks dedicated to financial services with a current emphasis on insurance, reinsurance and asset management companies."

Only months in to his new role as head of FIC, Mr. Torsiello said things are moving very quickly for the company with 50 projects currently in the pipeline. He said the firm is growing quickly - including the projected staffing up from 20 to 40 persons by year's end - because it sees there is a gap to fill. Mr. Torsiello said: "Wall Street has not done a good job of servicing the industry."

Looking at the insurance sector, Mr. Torsiello said "Insurance is really two businesses: underwriting and investment management. I am shocked at how many people ignore that."

Mr. Torsiello added: "Insurance is global and we need to be cross-border; to operate in all markets." Recognising this, Mr. Torsiello said the company has cast a wide net. Although FIC's market is primarily North America, Mr. Torsiello said he considers the North American market to include Canada, Bermuda, the Caribbean and Mexico, in addition to the US.

FIC was founded in 1995 by Joe Taussig, a well-known businessman on the Island. Last year Mr. Taussig, who now carries the title of founder, asked Mr. Torsiello to take over as CEO and president.

In his new role, Mr. Torsiello said: "Receptivity has been high: clients love to talk to us." The warm reception is something he attributes to: "Not thinking vanilla; we are not traditional Wall Street. That is not what we do."

On the prospects in the current insurance market, he said: "I have never seen better opportunities than in the next ten years. This is a better environment than ever before." He added however that risk is also now higher in regards to balance sheet issues in the property and casualty arena, which accounts for much of Bermuda's insurance base. "But activity is definitely on the uptake," he concluded.

Prior to joining FIC, Mr. Torsiello was managing director and head of the North America Insurance Practice of Dresdner Kleinwort Wasserstein, the international investment-banking firm. Before that, Mr. Torsiello spent 13 years with Salomon, Smith Barney. Over his investment banking career, Mr. Torsiello said he has worked on Initial Public Offerings (IPOs), Merger and Acquisition (M&A) transactions, demutualisations and regulatory matters in the global life and property and casualty (P&C) reinsurance and insurance markets.

Mr. Torsiello is a Certified Public Accountant and began his career with KPMG in their insurance practice in New York.

He serves as a director of Max Re, for which he was the placement agent overseeing raising of $511 million in private capital.