to move the company to Vermont, to gain the benefits of being licenced in the United States.

President, Fred Finley,said "There are other ways to obtain a US licence, however, domesticating GTE REinsurance was judged to be the best alternative for GTE.

"I doubt that there would be very many, if any, other Bermuda captives that would decide to move. It is unlikely that any other captive owners would be faced with the same set of factors as GTE.'' GTE REinsurance is the captive reinsurer of GTE's property and casualty risks and has a large amount of non-GTE casualty business. It was set up in 1976 and has been writing only GTE business since 1989.

It has the reputation as being one of the largest self-managed captive insurance companies in Bermuda, with more than 20 Bermudians in their staff.

Mr. Finley assured that the move would have no effect on GTE's Bermuda operations, and none of the 34 people employed here, including staff at GTE REinsurance Management Ltd., will lose their jobs.

The management company was set up in Bermuda last year, in anticipation of the move. REinsurance Management will continue to provide the day to day management of the company, with a manager to be designated in Vermont to ensure that all state regulatory requirements are met.

GTE expects to have the company domiciled in Vermont by early April.

Mr. Finley dismissed suggestions the company's move might be related to the Independence issue.

Mr. Fred Finley