A new Class 4 reinsurer has had its licence approved to launch services in Bermuda.

Aspen Insurance Ltd. was incorporated on November 6, 2002, and its insurance licence is in the process of being registered.

New chief executive, Julian Cusack, said Aspen Insurance Ltd. will specialise in property and casualty reinsurance.

The company is a wholly owned subsidiary of Bermuda-based Aspen Insurance Holdings Ltd (formerly known as Exali Reinsurance Holdings Limited) which also owns Wellington Reinsurance Ltd. (Wellington Re).

Wellington Re is the only London-based company established since September 11.

Mr. Cusack said Aspen Insurance is capitalised at $200 million and will have a quota-share arrangement with Wellington Re in place until at least 2006, which will initially account for about 90 percent of the company's annual premium income over the same period.

This means that effectively Wellington Re will be reinsuring its book with Aspen Insurance Ltd.

"It will be similar to a captive, but will also have a life of its own," says Mr. Cusack.

He said the company expects to underwrite third party reinsurance or retrocession up to about $25 million next year.

Standard & Poor's Ratings Services said yesterday it assigned its `A' long-term counterparty credit and insurer financial strength ratings to Aspen Insurance Ltd and said its outlook is stable.

The new reinsurer is named after the skiing resort. Apparently Chris O'Kane, the chief executive officer of the parent company, has a keen interest in skiing.

The Aspen group has strong ties with Bermuda-based Montpelier Re whose chief executive, Anthony Taylor is on the board of directors of both Aspen Insurance Limited and Aspen Insurance Holdings Ltd.

Montpelier Re's chief operating officer, Tom Busher, was one of the founders of the Lloyds insurer Wellington Underwriting Plc which holds a majority shareholding ?122.9 million in the Aspen parent company. Montpelier Re itself is also a shareholder.

Mr. Cusack himself was previously chief financial officer of Wellington Underwriting Plc. He and his wife will be moving here from London.

"The welcome support from the insurance community in Bermuda has been fantastic" says Mr. Cusack.

He said that in addition to himself, he is seeking to staff the new venture with two underwriting staff and two support staff from the local insurance market.

Aspen has already opened an office with Marsh management services here in Bermuda.