insurer, writing marine, aviation and non-marine, according to sources in the industry.

It is believed the company, understood to be called Magellan, is being capitalised at $100 million and is being funded in part by Citibank in London.

An exempted company called Magellan Holdings Ltd. was recently incorporated with Bermuda's Registrar of Companies.

Mr. Williams said he had been advised by his lawyer that it was inappropriate to comment on the venture at this time.

Earlier this year, he formed exempted company Visor Investments to acquire property, marine and aviation insurer Paumanock Insurance Company, which was in run-off, from New York-based Grumman Corporation.

He awarded the management contract to run-off Paumanock to Powerscourt Group, with whom Mr. Williams shares offices in Hamilton.