say they plan to raise 20 million ($32.6 million) to invest in a new Lloyds investment vehicle.

Centre Re will take a stake in Euclidean Investments and will also act as its reinsurer, said President and CEO of Centre Reinsurance Companies Mr. Mciahel Palm.

The publicly traded company will invest in Lloyd's syndicates selected by IIS, which will be its Lloyd's advisor.

"The emphasis for us, is clearly on the reinsurance programme,'' said Mr.

Palm. "We're in the reinsurance business primarily and the size of the reinsurance programme for us is far more significant than the size of the investment.

"Our primary relationship with Euclidean is to be a reinsurer and that is our normal policy with entities at Lloyd's.

"We're writing a reasonably large reinsurance deal and then as an adjunct to that making a small investment.'' The Zurich Insurance Company subsidiary will join with others in contributing a total of about $28 million to the investment company.

Bloomberg Business News reported yesterday that Centre Re has agreed to buy five percent of the ordinary shares of the new company, which would place their stake at somewhere near a 1 pounds.

Bloomberg also reported that the company would be liable for the new company's losses up to a maximum amount of 28 million.

Bloomberg said that together with the funds raised from the proposed placement, Euclidean will initially show funds at Lloyd's of 40 million, allowing it to write up to 80 million of insurance business.

The new company, whose shares will be listed on the London Stock Exchange, will underwrite business on syndicates selected by IIS, which will function as its Lloyd's advisor. IIS has developed a proprietary rating system that ranks Lloyd's syndicates in 11 performance bands.

Euclidean will invest only in syndicates in the top four bands, and has already obtained agreements for 67.8 million of its total 80 million capacity.

The balance of the capacity has not been allocated so that Euclidean can take advantage of any "attractive opportunities'' arising between now and the end of the year.