Bermuda's Max Re Capital Ltd. yesterday launched on the Nasdaq stock exchange and dipped slightly below its lowered initial public offering price on the first day of trading.

Max Re raised $192 million when it floated, becoming the latest insurance-related firm that successfully tapped the stock market for money this year, selling 12 million shares at $16 a piece.

Based on that price, the firm now has an overall market value of $805.8 million, based on 50.36 million shares outstanding.

The company, which was set up as a speciality reinsurer in 1999 in Bermuda, was launched under the symbol MXRE, with shares launching at $15.80, below the offering price of $16.00.

The company is currently building its global headquarters in Hamilton on Pitts Bay Road, next to Bluck's. It currently has its offices on Queen Street.

The shares fell as much as six percent to $14.75 before recovering to $15.45, a three percent fall from the open.

That was below the expected range of 14 million shares between $16.50 and $18.50.

The launch of Max Re follows a trend of floating insurance companies, insurance broker Willis Group Holdings Ltd., reinsurer Odyssey Re Holdings and US life insurer Phoenix Cos. Inc. all went public in June.

And life insurers Prudential Financial and Liberty Mutual are also preparing to go public after completing their demutualisations.

Max Re, which offers to smooth out certain risks for insurers by offering them a share of investment gains from the large premiums they charge, is backed by some big names in financial services.

Major shareholders include Citigroup Inc., insurance broker Aon Corp. and Capital Z Investments, a unit of Zurich Financial Services.

Lead underwriters of the IPO were Morgan Stanley and Salomon Smith Barney. Max Re is currently rated "A minus (excellent)" by A.M. Best Company, Inc., "A (strong)" by Fitch.

In its filing to the Securities and Exchange Commission, Max Re said: "These ratings reflect each rating agency's opinion of our financial strength, operating performance and ability to meet obligations."

Max Re Capital Ltd. was formed in July, 1999, and, together with its principal operating subsidiary, Max Re Ltd., a Bermuda-based reinsurance company, started operating in January 2000.

In December, 1999, the company raised gross proceeds of $331 million from an initial private placement of our common shares and non-voting common shares of Max Re Ltd.

In March, 2000, the company completed a second private placement of common shares which raised an additional $180 million of gross proceeds.

This cash was used to capitalise the company's reinsurance operations.

In May, 2001, Max Re and Bayerische Hypo-und Vereinsbank AG formed and capitalised Grand Central Re Limited, a licensed Bermuda reinsurer.

In connection with the formation and capitalisation of Grand Central Re, Max Re acquired 7.5 percent of Grand Central Re's ordinary shares.

In addition, Max Re entered into an insurance management contract with Grand Central Re to manage its reinsurance operations and an agreement with Grand Central Re to retrocede a portion of our business to it.

Max Re said: "We believe our relationship with Grand Central Re will increase our capacity to write larger reinsurance contracts."