yesterday as the Supreme Court appointed a provisional liquidator.

Bermuda's Registrar of Companies Kymn Astwood released a statement that the court had granted his petition to have John McKenna of Ernst & Young appointed as provisional liquidator of New Cap Reinsurance Corporation (Bda) Limited.

Mr. Astwood said the inspector he appointed in February, Mark Smith of Deloitte and Touche, had reported New Cap Bermuda was insolvent.

"Loss reporting on retrocessions from its Australian subsidiary had accelerated in early 1999 beyond levels expected by the New Cap Bda's actuaries and showed no signs of tapering off,'' he said.

"These losses had resulted in the insolvency of the company.'' New Cap Bda is registered as a Class 4 insurer under the provisions of the Insurance Act 1978 which classifies property and casualty insurers into one of four classes depending on their risk profile.

"Class 4 insurers are in the most stringently regulated class, and to be admitted a company must maintain at least $100 million in capital and surplus,'' Mr. Astwood said.

"In addition, an actuary on an annual basis must certify loss and loss expense reserves of a Class 4 insurer.''