Giant broker Marsh & McLennan is backing new Bermuda-based life reinsurer Wilton Re Holdings Ltd.

Records at Government?s Registrar of Companies show the company was incorporated on September 1 but it is not clear where its licence from the Insurance Division of the Bermuda Monetary Authority stands.

Insurance incorporation records through the end of November do not list Wilton Re has having a licence on the Island. It is understood from a Bloomberg report yesterday that the new company will write most business out of Wilton, Connecticut. It was reportedly established after many competitors bowed out of the market, pushing up premium rates.

Money for the new venture ? with $600 million in initial capitalisation ? has reportedly been raised in large part by Marsh?s private equity arm MMC Capital Inc.

It is not the first time that Marsh has been behind a Bermuda-based reinsurance venture with it also being behind AXIS Capital ? one of a wave of companies that set up on the Island in response to a capacity crunch after the September 11 terrorist attacks.

Although Marsh was not the only broker to put money into one of the so-called ?Class of 2001? insurers, in recent days rival broker Aon Corporation sold off its stake in the company it helped to set up, Endurance Specialty Holdings.

The reason Aon reportedly sold off its stake in Endurance was after conflict of interest concerns were raised by New York Attorney General Eliot Spitzer.

Mr. Spitzer has been conducting a probe of the insurance sector for months now that led in October to a damning lawsuit being brought against Marsh that alleged business abuses, including getting insurers it places business for to submit sham bids to create a false appearance of competition.

Marsh CEO Jeffrey Greenberg step down amid the controversy. Last week Michael Cherkasky, Marsh?s new CEO, told CBS MarketWatch that the firm is considering the future of its private equity unit and its relationship to Bermuda insurers. He declined to comment further.

Meanwhile, Bloomberg reported that Marsh?s MMC Capital Inc. is the largest investor of Wilton Re Holdings Ltd., which plans to start insuring life insurers next month.

Chris Stroup, a former Swiss Re executive, has been named as the new company?s chairman and chief executive officer, according to Bloomberg.

MMC Capital, based in Greenwich, Connecticut, is investing through its Trident III LP fund.

Bloomberg said Wilton Re, to be based in Wilton, Connecticut, will compete with insurers including, Swiss Re, Munich Re, Scottish Re Group Ltd. and MetLife Inc. Mr. Stroup, who left Swiss Re to spend more time with his family, told Bloomberg he expects to sign commitment letters with investors this week, he said.

A lawsuit filed against Marsh by New York Attorney General Eliot Spitzer on October 14 hasn?t affected Wilton Re?s ability to raise funds, Mr. Stroup added.