Bermuda is not first choice as a new domicile for UK-based Brit Insurance, whose chief executive officer says the island's political stability is a concern.

Speaking at a press conference in London, yesterday, Brit's group CEO Dane Douetil said Bermuda was one of a number of jurisdictions the company was considering.

London-listed Brit had previously said it was looking for a new domicile for its corporate headquarters with a lighter taxation burden than that of the UK.

Potential choices, he told a questioner, include a number of jurisdictions, including some in Europe. "There's a whole number of options that we're looking at," Mr. Douetil said, according to a report on BestWire. Brit's consideration of a possible change of corporate headquarters has been influenced by what it sees as a lack of certainty from the UK government on taxation, particularly regarding foreign profits, Mr. Douetil said. Brit, he added, faces tax disadvantages as it competes in the global market.

"We need to get into a regime where we can plan five, 10 years ahead," Mr. Douetil said. "This is not something you do for the short term. It's not a one- or two-year fix."

Mr. Douetil would not rule out Bermuda, but he said he would not describe the island as Brit's main choice. "Bermuda has its issues," he said. "There's no doubt that people in Bermuda are concerned about political stability."

Brit, a Lloyd's insurer, said profit slumped on lower investment returns. Net income fell to £37.6 million ($69 million), or 12.15 pence a share, for the six months to June 30, from £76.1 million, or 23.39 pence, a year earlier, the company said yesterday in a statement. Brit posted an £11.9 million loss on its equity investments.

"Volatile investment markets caused a drag on our short- term performance," Mr. Douetil said in the statement. Tougher macroeconomic and market conditions are "inevitable" over the next few months, he added.

Reinsurance rates are declining in the UK as competition increases, while stock market declines are trimming profit amid the fallout from the collapse of the US sub-prime mortgage market.

The loss on equity investments came after the company took a £26 million charge on lower stock prices. That compares with a £15.3 million profit a year earlier.

"We expect to have a better second half this year," Douetil told journalists yesterday. "We'll claw back quite a bit of what we lost over time."