A Bermuda-based company has instigated a stock repurchase programme to halt the company's share price free-fall.

Insurers and reinsurers based on the Island have seen prices plummet since last June, but Mutual Risk Management Ltd. said it will halt the fall in its share price by buying up to three million of its outstanding common shares.

Shares of Bermuda-based insurers and reinsurers have been pummelled in the stock market this year, and Mutual Risk has been one of the companies worst affected.

The effects of investors' concern about the state of the sector can be seen in the performance of the Bermuda Insurance Index, which tracks the performance of ten companies based on the Island.

Since the index was launched last year it has fallen about 45 percent.

The Bermuda Insurance Index Fund, launched shortly afterwards, after stock began falling, has also devalued by 26 percent.

At the end of September Mutual Risk's stock fell about 30 percent after management warned that third quarter profits were expected to come at 33 to 38 cents a share, below analysts' projections of 44 cents a share.

After this, Mutual Risk's stock has continued to fall to finish around $12.13 yesterday after a 52 week high of $43.25.

According to MRM chairman Robert Mulderig the company believes that the stock is currently undervalued and wishes to see the prices rise.

Bermuda's MRM in bid to halt share price free-fall "The company believes that the shares are significantly undervalued in the public market place,'' said Mr. Mulderig.

"We have a few shares outstanding and we have decided to purchase them.

"This will carry rewards for the shareholder, as well as the company.

"We have fallen somewhat short of the expectations for the third quarter of 35 cents a share.

"We are between seven and 12 cents short of that. But we are still profitable, there is no doubt about that.'' Mutual Risk Management Ltd. provides risk management services to clients in the United States, Canada and Europe seeking alternatives to traditional commercial insurance for certain of their risk exposures.

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