bearing the brunt. With both businesses employing people in similar posts such an outcome was inevitable, reports David Fox .

Nine jobs -- including seven mostly administrative positions held by Bermudians -- have been lost as a result of the merger between EXEL Ltd. and Mid Ocean Ltd., it has emerged.

The jobs became redundant when the two organisations were put together in a deal that saw EXEL Ltd. purchase the remaining 73 percent of the common shares it did not already own for $2.1 billion.

No further redundancies are expected, but EXEL expects to slash $15 million from annual expenses and sell more types of insurance. Redundancies are virtually inevitable with mergers of this type, as both sides bring to the table jobs with similar functions.

Industry observers expect that staff who cannot be accommodated in the new structure will be more than adequately compensated.

EXEL had already moved other displaced staff into a new financial products division and into other areas of the company.

XL Mid Ocean Re president Henry Keeling commented: "There was some overlap on the underwriting side. There were underwriters who moved over and other affected areas would include accounts and investments. Some support staff moved into the financial products division.

"But we obviously were not successful in all instances in finding suitable alternative locations for people.'' Former Mid Ocean Ltd. president and CEO, Michael A. Butt, and chairman Robert J. Newhouse Jr. remain with the group, both taking a seat on the board of EXEL Ltd. and both starting consultancies with EXEL.

A senior executive who is departing the firm because his responsibilities would be duplicated is executive vice president, chief financial and administrative officer Charles F. Hays. Changes for the three were previously announced. Mr. Keeling refused to discuss details of individuals, but it is known that other key, former Mid Ocean Ltd. executives are being displaced.

They include Bermudians vice president, treasurer and secretary John M. Wadson and vice president and chief investment officer W. Preston Hutchings. In addition, underwriter John Witherspoon has already left.

Industry sources concede that such experienced and talented individuals would not only be fully compensated at departure, but are also likely to find a lot of interest in their services.

Apart from staff integration, the combined companies have also had to focus on information systems integration for transactional software.

Mr. Keeling spoke to us while in the throes of moving offices. Mid Ocean's reinsurance offices have been moved from Richmond House on Par-La-Ville Road to two floors of the new Wessex House at 45 Reid Street.

They join the other part of the new reinsurance combination, XL Global Re staff, who moved from Windsor Place. Together XL Mid Ocean Re now comprises some 52 staff.

Mr. Keeling said, "The Richmond House will be used by the new financial products division and the investment and finance people of XL.

"We will all wait until the new building (EXEL House at the Bermudiana site) is completed and we will all come together two years down the road.'' Page 32: Credit ratings OUT The following are among former Mid Ocean executives to lose their jobs: Executive vice president, chief financial and administrative officer Charles F. Hays ; Vice president, treasurer and secretary John M. Wadson ; Vice president and chief investment officer W. Preston Hutchings ; Underwriter John Witherspoon .