Drake Holdings Ltd., has receiveda ccredited reinsurance status in Hawaii.

The approval marks the first step in the company's plan to achieve accreditation in 42 states in the next few years, according to Lloyd's List.

The accreditation follows Sphere Drake's establishment of a reinsurance trust fund with Citibank NA in New York which has a surplus of $20 million.

More cash will be added to the fund as the reinsurer becomes accredited in more states, Lloyd's List reported.

By the end of this year, Sphere Drake plans to be accredited in 23 states while the second stage, to be completed in 1996, will add 18 mores states to the list.

Sphere Drake regards accredited reinsurer status as important for its profile and also believes the programme will strategically place the company to take advantage of the US market.

Sphere Drake's move follows Unionamerica's announcement in December that it had become one of the first London market reinsurers to gain accreditation in New York.

Sphere Drake Holdings, with offices in Hamilton, underwrites international property and casualty insurance and reinsurance business through its two operating subsidiaries, Bermuda and London.

The companies business consists predominantly of marine and aviation and non-marine risks, with an emphasis on US-based clients.

The company also continues to develop its presence in the Alternative Risk Transfer (ART) market from Bermuda.