The Strategic Research Institute is to hold a conference on acquisition strategy in Bermuda from November 14 to 17.

The theme of the conference will be: "Acquire or be acquired: The strategic decision for the new millennium'', with the goal of enabling insurance executives to decide whether their companies are strategically positioned to compete in the global marketplace.

Prominent analysts, insurance, reinsurance and financial services executives are expected to meet in Bermuda to discuss the current state of the industry and the major challenges the industry faces. Among the participants will be a number of Bermuda insurance executives, including Robert Mulderig and Michael Butt.

"Building critical mass worldwide is the new business imperative,'' an SRI conference organiser said. "As the level of organic growth in the insurance industry proves difficult to maintain during a soft market, companies increasingly rely on aggressive acquisition strategies to maintain profit margins.'' In 1998, merger and acquisition (M&A) activity in the insurance and financial services industry reached a record level, with 565 transactions completed, at a total value of $165.4 billion. Bermuda companies contributed more than their share.

"However, at this rate, many mergers are undertaken without appropriate discipline, so that achieving expected shareholder value is never realised,'' the organiser said. "Improvement in overall operating performance remains elusive and expected profits never materialise, reinforcing a vicious spiral of declining profits.'' Cheryl Bailer, vice president, of the SRI's insurance division, can be contacted at 212-967-0095, ext. 241, or via email at cbailer y srinstitute.com. SRI's website is www.srinstitute.com.