The parent company of Terra Nova (Bermuda) Insurance Company Ltd. has added another $35 million of new capital to the Bermuda insurer, raising shareholders' equity to just over $110 million.

The additional investment by its parent company, Terra Nova (Bermuda) Holdings, has the Bermuda operating company now meeting the capital requirements for Class Four status under the new insurance regulations.

The capital addition comes after a successful $50-million rights offering was completed with existing shareholders, raising additional equity for the Terra Nova group.

Terra Nova (Bermuda) Holdings is the parent company of two operating firms.

Terra Nova (Bermuda) Insurance Company focuses primarily on property and casualty reinsurance. Terra Nova Insurance Company is headquartered in the UK, writing mostly marine insurance and property and casualty reinsurance.

The remaining $15 million of the $50 million in new equity, is to be split two ways, with $10 million retained at the parent company and $5 million going to the UK subsidiary, supplementing a $10 million contribution at June 30.

Chairman of the Terra Nova Group, Mr. William O. Bailey said:"This expression of support and confidence by our existing shareholders in substantially increasing their investment so quickly after the December 1994 financial restructuring is encouraging and most significant.

"Their commitment clearly demonstrates to our clients, brokers, management and employees the quality of our ownership and their continuing support of our efforts to increase Terra Nova's financial strength and importance in both the Bermuda and London reinsurance markets.'' The group's two insurance companies recently reported combined net income of $26.9 million for the first six months of 1995 and total capitalisation of $255 million at June 30. The capital subscribed through the rights offering increased the companies' combined shareholders' funds to over $300 million.

Meanwhile, president of Terra Nova (Bermuda) Insurance Company Ltd., Mr. John J. Dwyer, said,"This additional investment comes at a most opportune time in the development of Terra Nova in Bermuda in the rapidly changing insurance and reinsurance world, quality and security remain of the highest importance, and this latest investment of capital emphasises our focus on financial strength.

"It will assure brokers and clients of our determination to meet their expectations.

"We anticipate that the more than doubling of our capital and surplus from $55 million at year-end 1994 will elicit a very positive reaction from the market as we approach the busy January 1st renewal season.

"It will demonstrate to our brokers and clients that our parent organisation and its investors recognise the importance of reinsurance security as well as growth opportunities of the Bermuda market.'' Investment funds managed by Donaldson, Lufkin and Jenrette merchant banking own 18.9 percent of the Terra Nova group, with original principals, Marsh & McLennan, Aetna Life & Casualty and the CIGNA Corporation, holding a combined 38.5 percent of the equity.

They were joined last December by Chemical Venture Partners (5.8 percent), J.P. Morgan (5.3 percent), investment funds managed by Century Capital Management (5.3 percent), Paine Webber Capital Management (5.0 percent) and others. The company's management also has a stake.