which was to have been a new $300 million-capitalised property catastrophe reinsurer in Bermuda.

Scor confirmed yesterday that it was not going ahead with the planned launch this month of the company, which was incorporated in Bermuda in August of this year.

Communications director Mme Claudie Bernheim said: "We did not want to be small players in a playground for the big, so we have decided to reassess our plans.'' Compass Re's intended capital base paled in comparison to other Bermuda-based property catastrophe reinsurers like Partner Re, which was capitalised at $770 million; Mid Ocean Re, $740 million; Tempest Re, $500 million; and Global Capital Re, $450 million.

Mme Bernheim said Scor intended to return to the market with a new project in 1994 and would probably make an announcement at the beginning of next year.

She denied that a market perception that Compass Re was being formed simply to take advantage of new, high rates and would not be around for too long was behind Scor's decision to abandon its original project.

Compass Re had been criticised in London and other markets for being a short-term money-making venture.

"This is not at all the reality,'' said Mme Bernheim. "We consider that there is a lack of market capacity and that it is our job to respond to this need. The market has changed and we are readjusting our project.'' Scor believed that, since September, other property catastrophe operators had changed their business strategies, deciding to become "real'' insurance companies with capacities of up to $1 billion.

Scor had said it hoped Compass Re, when it does get off the ground, would write property catastrophe business and offer a maximum of $20 million per programme with an estimated 1994 volume of $150 million. US business was to have contributed around 40 percent of the total premium income.

Compass Re's non underwriting aspects were to have been handled in Bermuda by Commercial Risk, whose president, Mr. Graham Pewter, could not be reached for comment yesterday.