Ltd., has established new operating entities in Australia and Hong Kong.

The new Melbourne operating company, R.E. Brown Pty. Ltd., will be run by managing director Peter F. Green, who joins R.E. Brown Pty. Ltd. after an extensive career in the Australian market.

That career included service with AIG Melbourne, an association with Lloyd's broker C.E. Heath, positions at FAI Insurance Ltd. and the operation of his own brokerage firm.

The new firm will continue Octavian Non Marine Syndicate 702's focus on its specialist lines of professional indemnity insurance, D&O liability, bankers' blanket bond and other related financial insurance lines.

The Syndicate's leading underwriter Reg Brown said: "The establishment of R.

E. Brown Pty. Ltd. in Melbourne recognises the long and successful trading relationship that our Non Marine Syndicate 702 has had in the Australian market.

"Peter Green's decision to join us and our desire to provide superior service to existing clients and brokers and build upon existing relationships in that market has encouraged us to take this next step in the development of our business.'' The Hong Kong entity, Octavian Hong Kong Ltd., will be led by newly-appointed managing director Paul Lee. He will be responsible for the development of Terra Nova's underwriting activities throughout the Far East. Mr. Lee's considerable knowledge and experience was gained through many years of prominent positions within the underwriting, broking and ship owning sectors of that market.

He joins Terra Nova after serving as managing director of Minet in Singapore and managing director of FAI Pacific Insurance Company Ltd. where he was responsible for professional indemnity, medical malpractice, financial institutions and marine hull across the entire Asian region.

Terra Nova President and CEO Nigel Rogers stated: "The appointments of Peter Green and Paul Lee to lead these new operations in Australia and Hong Kong are important developments for the group in major markets for our products and advances our strategy to be where the business is.'' Terra Nova (Bermuda) Holdings Ltd. is the holding company for five wholly owned operating entities -- Terra Nova Insurance Co. Ltd. in the UK, Terra Nova (Bermuda) Insurance Co. Ltd., Corifrance in Paris, Terra Nova Capital Ltd., and Octavian Syndicate Management Ltd. which manages eight Lloyd's syndicates in which the company has a participation.

Through these subsidiaries, Terra Nova underwrites a diverse property, casualty, marine and aviation insurance and reinsurance business on a world-wide basis.