consultant that could create new business opportunities for the Island.

Mercantile & General Reinsurance Company Plc (M&G) is taking consultancy advice from Somerset-born Neville Cave on offshore business opportunities and potential strategic alliances in alternative risk management (ARM) and finite risk.

Mr. Cave said that while M&G was looking at various alternatives he was confident that they would see attractive opportunities in certain areas that would involve Bermudian entities.

He has spent the first of a three motnh consultancy in London with the firm.

M&G's new business strategies include an enlarged involvement in ARM and asset/liability matching and risk modelling services.

Mr. Cave, a former president of The Continental Insurance Group of companies in Bermuda, said that he was advising on "the growth potential and unique structuring advantages of convergent financial and insurance risk management techniques and to assist in the development of finite risk service capabilities available in composite reinsurers''.

Formerly with American International Group, Bermuda Fire & Marine Insurance Company Ltd. and Mutual Risk Management, Mr. Cave joined Continental to help build alternative risk financing and asset management facilities for multi-nationals and captives.

Corporate risk manager for M&G, Wayne Daniel, said: "It makes sense to engage him because although we ourselves have considerable strengths and are well diversified globally, we felt we could benefit from Mr. Cave's experience and especially his knowledge of the North American market.'' A former director of Accord Re, Mr. Cave managed the finite risk captive owned by New York's Atrium Corporation and several FT 100 British and European insurance subsidiaries set up in Bermuda and Barbados, including foreign subsidiaries of Continental Corp.

Mr. Cave conceded it was not helpful being based in Bermuda after the buyout of Continental by CNA, but he said 11 years with the Insurance Advisory Committee has helped him provide counsel overseas on Bermuda's regulatory structure.

He believes that the time is right to strengthen the underwriting and capacity links between London and compatible world insurance and capital markets in a manner which maximises operational synergy and addresses the financial, collateral and securitization needs of convergent disciplines and markets.

M&G reportedly wrote gross premiums of $220.5 million in long term business including investment products worldwide and received the British insurance industry's Reinsurer of the Year award in 1995.