intends taking advantage of the accessibility to the European Union from Ireland, reports David Fox .

More European firms are beginning to recognise the need for higher limits and more insurance, as litigation and liability awards there become more significant, ACE Insurance Co., Ltd. president Dominic Frederico observed this week.

Mr. Frederico was commenting as executives of the Bermuda parent, ACE Ltd., were in UK meetings outlining their global strategy heading into a new millennium.

They were present for the official opening of one of the keys to that strategy, their Dublin office, ACE Insurance Co. Europe Ltd.

ACE Europe or AICE, capitalised at $50 million, obtained licences in September and is authorised to underwrite 18 classes of non-life insurance in the European Union. AICE will use an integrated underwriting, rating and claims service for its broker-driven business.

AICE intends to take advantage of the accessibility to the European Union from Dublin and the amenable nature of Irish regulation.

ACE's move into the Lloyd's market two years ago increased their international presence by gaining access to Lloyd's worldwide licensing capabilities.

Mr. Frederico said ACE Europe established a platform for European insurance and reinsurance operations and underlined the company's continued focus on global diversification.

Mr. Frederico said, "Additionally, our recent acquisition of Westchester provides greater capabilities to our global clients who require US coverage.'' He said, "ACE can bring the experience established over many years in the areas of catastrophe exposures and special risks to Europe via the Dublin office, focusing on a more catastrophic and severity market.'' ACE has previously been building a European book of business from its Bermuda domicile, using a representative office in London.

Mr. Frederico said about $70 million in premium, or some 15 percent of ACE's risks can be traced to Europe, but growth in that book of business is expected to grow substantially with an on-the-ground presence.

He said, "The challenge to Ireland will be not to just take that book of business, but to develop their own book of business, through new relationships and new accounts.

"The challenge to ACE Insurance Co. Europe Ltd. is to really become a European carrier and exist in that marketplace. Some of the accounts we identified in the $70 million portion, deal with aviation and satellite areas that have always been a global business.

"The Bermuda presence is more than adequate in servicing those needs because those clients buy globally. It's really in the property, D&O, excess liability and financial lines areas where it's more of a unique approach that is going to be really tailored to that marketplace.'' Mr. Frederico added, "We will be represented in the market and identified as a part of the market, giving us a greater familiarity with the brokers and the accounts in the market, while helping us become more in tune with the needs of the marketplace, as we help develop new products and new services.'' Much of what ACE is writing in Europe, at present, is excess liability. The company sees great opportunity for more D&O (directors & officers) business, especially with its broad coverage CODA product.

But the financial lines business, more than half of which already involves European risks, is also expected to have tremendous application there because of a customised solution to risk management products approach.

The Dublin office is being staffed by general manager Mark Kealy, a 19 year veteran who was director of Willis Corroon Management (Dublin) Ltd., where he was responsible for all underwriting aspects of the management company's client portfolio.

Another of the first recruits is underwriting manager Adam Mullan, who last spent nearly four years in Bermuda as a vice president of a major broking operation, specialising in the placement of Fortune 500 business into the Bermuda market.

A lease is being finalised for office space for ACE Europe in the International Financial Services Centre in Dublin.

Dominic J. Frederico Adam Mullan