An agreement between eSynch Corporation and local company River Capital Limited announced yesterday should pave the way for a new local insurance and reinsurance company.

And Robin Spencer-Arscott, the former CEO of AON Bermuda Group, has been touted to head the new vehicle - which has yet to be named.

Yesterday, Mr. Spencer-Arscott told The Royal Gazette he has been approached by principals of the deal about heading the new company but that the announcement was “a bit premature”.

eSynch - a California based software development company - announced yesterday that its subsidiary Oxford Media Corporation had merged with River Capital. “As part of the adopted business plan, Oxford Media's Bermuda operation will seek registration as a Class 3 Insurance Company with the Bermuda insurance regulators,” the company said. “Upon obtaining this authority it shall commence operations as a provider of insurance and reinsurance products and services.”

Mr. Spencer-Arscott said his partner Howard Taylor's company River Capital had merged with the eSynch subsidiary but the coming insurance/reinsurance company is still in its earliest stages.

Mr. Taylor is expected to provide management expertise while Mr. Spencer-Arscott would handle the insurance side of the business.

Before the deal can become a reality, however, Mr. Spencer-Arscott said the it “will have to get away from eSynch and find capital and financing for the reinsurance company”.

He added: “The idea is there. The partnership with eSynch has been in the works for over four months. But it's still very much in the discussion stages.”

He said the company must first be named and then meet the approval of local industry regulators. And while he has been approached to head the company, Mr. Spencer-Arscott said no formal agreement on the position has been reached.

“We are moving on it,” he said. “Now that the decision has been made to spin-off Oxford Media to River Capital, we'll be coming up with a name and moving forward with the financial end.”

Mr. Spencer-Arscott was the founder of the Bermuda Insurance Symposium World Insurance Forum and a past CEO of Frank B. Hall (Bermuda) Limited.

“In addition to his strong management background, Mr. Spencer-Arscott brings to bear an extensive list of established relationships with senior executives of all the major underwriting and insurance broking companies,” e-Synch's media release said.