Wellington Underwriting Plc may be the next Lloyd?s of London underwriter to establish a new underwriting platform in Bermuda, according to a report from ratings agency A.M. Best.

Best said at least one London market equity analyst believes Wellington will join Hiscox, Amlin, Omega and Catlin with either an operating subsidiary or a holding company in Bermuda.

?Wellington has openly said that it is looking to establish new trading platforms,? Nick Johnson, an equity analyst with Numis Securities in London, said in a research note, Best reported.

?With favourable trading conditions and potential tax savings we think it is highly likely that the next step will be Bermuda (the group already has a US platform) and would envisage a move before December in order to capture important renewal business.?

In his research note, Mr. Johnson said that if Wellington establishes a Bermuda subsidiary, such a move would give it an opening to redomicile the holding company ?in a similar way to that planned by Omega and Hiscox?.

Noting that about 70 percent of Wellington?s business already comes from the United States, he said he believes ?there is a strong case for a move ...?

A spokesman for Wellington would only confirm the company?s comment in its interim results announcement.

?We are exploring the development of new trading platforms that complement our existing Lloyd?s and US operations,? marketing manager David Turner said.

?When we have identified appropriate opportunities we will consult with shareholders and advise the market.?

Johnson said Wellington may capitalise a new Bermuda operation at about $500 million, the same as Hiscox.

Wellington currently has about ?50 million (US$92.9 million) of existing free cash, which could be increased to ?75 million if it sells its remaining shares in Aspen Insurance Holdings Ltd.

That, plus other cash that Wellington could produce, would leave about ?125 million of new equity Wellington would have to raise, according to Johnson?s estimates.

Aspen itself is a spin-off from Wellington, formed in Bermuda in 2002 from what was then Wellington?s reinsurance arm.

Wellington manages Lloyd?s Syndicate 2020, which is among the largest syndicates in the Lloyd?s market with allocated capacity of ?800 million in 2006, up from ?729 million the previous year, according to AM Best Co. company reports.

Wellington provides 67 percent of the syndicate?s capacity, but it plans to increase its ownership.

Lloyd?s Syndicate 2020 currently has a Best?s Financial Strength Rating of A (Excellent). Wellington Specialty Insurance Co., Aspen Insurance Ltd., Omega Specialty Insurance Co. Ltd., Amlin Bermuda Ltd. and Hiscox Insurance Co. (Bermuda) Ltd. all are rated A- (Excellent).