Bermuda insurance services company Stirling Cooke Brown has opted to move its audit business to KPMG instead of Arthur Andersen, which had been the firm's auditor.

Approval to switch auditors was approved by shareholders at the company's annual meeting on May 23.

The company, in an SEC filing last week, said there were no disagreements with Andersen on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure.

It is not known if the company decided in favour of KMPG based on Arthur Andersen's international legal troubles - with the firm being put under investigation as the auditor for failed energy giant Enron.

Stirling Cooke Brown's move to change auditors follows that of another Bermuda-based firm, reinsurance company IPC Holdings which earlier in the year,

announced they could drop Arthur Andersen as their auditor in favour of accounting rival KPMG.

At the time, IPC chief financial officer John Weale told The Royal Gazette that the decision - which is subject to a shareholder vote on June 14 - was based on the "uncertainty created by Arthur Andersen's legal problems elsewhere in the world" and not any unhappiness with the local Arthur Andersen firm.

Company management indicated that Arthur Andersen had been the company's auditors since IPC's formation nine years ago, "during which period they have always adhered to a high standard of professionalism".

In the interim however the Bermuda office of Arthur Andersen announced its staff - including the company's partners - would be taken over by rival accounting firm PriceWaterhouseCoopers.

Andersen Bermuda's managing partner Scott Hunter and PWC joint managing partner Tom Conyers announced in April that the local firms had reached an agreement in principle under which partners and staff from Andersen will join PwC.

The move was expected to become effective early this month and all staff relocating to the PwC offices at Dorchester House.