The Neal Bill is flawed in its concept and there were better ways to achieve the US Government's aim of raising taxes.

That is the conclusion of panel members from the 'Class of 2005' at The Bermuda Reinsurance Club held at the Fairmont Hamilton >Princess yesterday, who discussed everything from how their companies have fared since they were set up in the wake of Hurricanes Katrina, Rita and Wilma to the potential for new waves of insurers to follow in their footsteps, merger and acquisition activity (M&A) , and monoline versus diversification, as well as the impact of major market changing events, Solvency II and the Neal Bill, among other topics.

The panel, which was made up of Don Kramer, recently retired CEO and current non-executive chairman of Ariel Holdings Ltd., Neil McConachie, president and chief financial officer of Lancashire Holdings Ltd., Mark Byrne, chairman of Flagstone Reinsurance Holdings, and Tom Miller, assurance leader at PricewaterhouseCoopers Bermuda, who concurred on their thoughts on the Neal Bill.

"I don't think it is a particularly good idea, that bill, and I think there were better ways to ensure their objectives," said Mr. Byrne, on the issue of the Neal Bill.

Mr. Kramer described the bill, which was aimed at foreign insurance groups with US subsidiaries who were able to cut their US tax bill by ceding premiums back to their non-US parents in the form of reinsurance, as "flawed in its concept" and would only cause companies to change their business practices rather than creating the revenue the US<\p>Government was looking for.

Turning to the issue of M&A, Mr. Byrne said that activity was pretty quiet at the moment, with little movement in the marketplace, adding that he would be surprised to see anything happen soon.

"Everybody will continue to talk to everybody and occasionally people will click and work out what the deal issues are," he said.

Mr. Kramer said there were a few deals left to be concluded and some of them might come together, but that the industry knew by and large who were making the moves.

The panel also debated the markets for future growth in the insurance sector, including Brazil and India, in addition to a move towards greater diversification in today's evolving industry.