segment of the Market: non-traditional, alternative risk products. David Fox looks at the formation of the new concern.

Yet another highly-capitalised insurance and reinsurance company is being formed in Bermuda, aiming to take advantage of the market for alternative risk products.

A confidential information memorandum is being prepared for distribution to prospective investors, and the soon-to-be incorporated company anticipates initiating underwriting activities in the first quarter of 1999.

The prospective firm will have a management team lead by two executives who just a few years ago put together a successful Bermuda company that is growing quickly.

Unnamed company founders have already put together a Bermuda holding company, Greenwich Holdings Ltd., which is operating out of offices at Dorchester House on Church Street, Hamilton.

A company statement said the new Bermuda vehicle would specialise in non-traditional, alternative risk products.

It said, "The formation of the new company is being facilitated by four leading professional groups: Richard H. Black and Michael J. Cascio, senior executives in the insurance and reinsurance industry during the last 20 years, who will form the senior management team of the new company; The Kenmar group of companies, one of the largest independent worldwide alternative asset management firms; Arthur F. Bell, Jr. & Associates LLC, a US public accounting firm providing services to international trading firms, fund managers and alternative asset management firms; and PriceWaterhouseCoopers Bermuda, a member of the worldwide PriceWaterhouseCoopers organisation, the world's largest professional services provider.'' Arthur F. Bell, Jr. said, "Our firm provides professional services. We work with a lot of international clients in the investment management and tax areas, in the US and Europe.

"We have worked with PriceWaterhouseCoopers and Kenmar, which is a client of ours, in the structure of this programme and bringing the parties together, and generally facilitating it. We will have an ongoing role in advising the group and working with them, primarily as it affects off-Island aspects of the company.

"We provide accounting services, compliance services, regulatory and tax advice, and make contacts with interested parties.'' Based upon current commitments and interest received so far, the new company is expected to have a substantial capital base, and expects to seek a favourable industry rating.

Mr. Bell said, "There have been numerous, substantial discussions with interested parties.'' Mr. Black and Mr. Cascio were said to be travelling and unavailable for comment. The former Centre Re underwriters were key players in the establishment of Stockton Reinsurance in the summer of 1994, with the backing of Commodities Corporation.

Last summer, some three years after they facilitated Stockton's formation, they abruptly resigned their vice presidencies and directorships.

Their departure came after a year to March 31, 1997 for which Stockton later declared a $134.4 million profit (excluding an additional $13.6 million profit for minority shareholders), a near 527 percent improvement over the $25.5 million in earnings the year before.

Stockton's shareholders' equity grew nearly 50 percent that year, as total assets mushroomed from $400 million in 1995 to more than $1.2 billion by March 1997.

Richard Black Michael Cascio