Glencoe Insurance Ltd., a subsidiary of RenaissanceRe Holdings Ltd., plans to diversify into Florida windstorm insurance, the direct writer's senior vice president and managing underwriter Glenn Thomas said.

For Glencoe to direct write Florida windstorm, state law requires the company first be approved to write windstorm in its own domicile.

To comply, Glencoe, a Bermuda exempt company, in applying to the Registrar of Companies to change its memorandum of association with a view to becoming a non-admitted surplus lines insurer in Florida.

"Florida law says we must be licensed in the jurisdiction of domicile. We have no intention of writing (windstorm coverage in Bermuda for commercial lines). This is strictly to meet Florida law,'' he said.

"This is a good law. We're in complete agreement with it. This (changing the memorandum of association) is a technical amendment.'' Glencoe currently direct writes California earthquake insurance, primarily commercial, as well as windstorm on a select basis.

"It makes sense to diversify by geography and peril,'' Mr. Thomas added.

Florida presents a market with potential for return and one where there is demand, he said.

"We have the underwriting knowledge and the capacity.'' Glencoe has direct written commercial California earthquake coverage since formation in mid-1996 when the California Department of Insurance approved Glencoe as a non-admitted surplus lines insurer.

Surplus lines is specialised property or liability coverage provided by a non-admitted insurer where it is unavailable from state licensed insurers.

RenaissanceRe, with offices at the former Lane House on East Broadway, primarily writes property catastrophe reinsurance through subsidiary Renaissance Reinsurance Ltd.

Separately, Glencoe recently appointed underwriter Al Colosimo as vice present. Mr. Colosimo was previously with the Zurich Group in New York.