of the Registrar of Companies staff, according to Bermuda's top insurance regulator.

And Registrar Mr. Malcolm Butterfield said the Island is still attracting new company formations despite criticisms from other insurance markets.

Mr. Butterfield was speaking at the last session of the Bermuda Market Briefing: From Captives to Cats on Tuesday.

The conference sponsored by the Bermuda Insurance Institute and the Society of Chartered Property Casualty Underwriters' New York chapter wound down on an upbeat note as the Island's strengths as an insurance domicile were touted.

Mr. Butterfield used the seminar to rebut criticisms of Bermuda contained in US Congressman John Dingell's report on insurance insolvencies.

Part of the uniqueness of the Bermuda market, he remarked, was an understanding of the regulatory process.

He added: "With the greatest respect to congressman Dingell, I think they've missed the point on the issue of staffing (of the regulator's office).'' Mr. Butterfield was responding to a criticism in the report that the 18 staff at the Registrar of Companies could not produce a quality examination of the entire insurance company register adequately.

Local authorities have long argued that Bermuda's unique regulatory system employs input from the industry directly, and indirectly, and removes the necessity for pedantic regulatory scrutiny.

They say the industry is so involved in the regulatory process that individual companies are more likely to get it right in the flexible, yet effective, process. Mr. Butterfield made it clear that before companies can come here, they must meet high standards.

In detailing the Island's successful year, Mr. Butterfield, said 61 new companies were formed here last year.

"We did outstanding,''he beamed. "In 1994, up to September this year, we had formed another 64. We are well into 70-plus companies, now. And removals are not as high as last year.'' "There is respect for Bermuda worldwide. We are an international reinsurance market. It is just one good reason while Bermuda should be your domicile of choice.'' The regulator was addressing the last issue on the briefing, which posed the question "why choose Bermuda'' as a domicile of choice for insurance business.

He listed a number of Bermuda's attractions, including location, telecommunications, market diversification, regulatory climate, economic and political stability and even the proximity of the various business houses around the City.

There was support for his position from both Chubb Atlantic Indemnity president, Mr. John Stites, and casualty risk manager of the Pennzoil Company, Mr. Michael D. Phillipus.

Mr. Phillipus said his 105-year-old company had $2.8 billion in revenues last year, $5.4 billion in assets and was conducting business in more than 60 countries.

They incorporated a captive here in 1970, Savannah Company Ltd., before the captive boom, because they wanted "a proper risk management tool''.

He said the company has not been convinced of any need to move to any other jurisdiction during any of those 24 years.

The company was also one of 53 US original investors in the Corporate Officers & Directors Assurance (CODA) Ltd. in 1986, when it was formed by Chase Manhattan Bank and Johnson & Higgins. Pennzoil pumped $2.75 million into the company.

Mr. Phillipus said the company has taken the time to check on other domiciles but always elects to remain here, predominantly because of the regulatory and legislative environment.

Mr. Phillipus said: " We become very concerned when we compare Bermuda with other offshore domiciles, where the minute the legislature changes, the government changes, the insurance commissioner changes, the view of captives is changed, the tax structure is changed.

"We look at our captive as a long term project. We want a long term involvement and we do not think that we can find that in a number of other domiciles.

"And also the infrastructure in Bermuda is second to none. We're very pleased with the level of captive management and other services for captives and taxes, of course, is an issue we would always consider.''