the Bermuda branch of a troubled Canadian insurer has been postponed by agreement.

Confederation Life Insurance Company, Canada's fourth largest insurer was seized by regulators in August, after a proposed Cdn$600 million bailout by a group of Canadian insurers failed to materialise. It is regarded as one of the biggest insurance failures ever in North America.

The collapse was said to have been caused by the poor performance of a portfolio of real estate investments.

The court hearing for the Bermuda branch was adjourned as agents for the provisional liquidator are beginning consultations with Canadian officials to determine exactly what to do about the local branch.

Registrar of Companies Mr. Malcolm Butterfield, is provisional liquidator.

Lawyer, Mr. Nigel Howcroft, with Appleby, Spurling & Kempe is acting on his behalf.

Confed's Bermuda did not write any business for local residents.

Mr. Howcroft said: "The petition on the hearing to wind up the company was adjourned because we are trying to determine in consultation with the Canadian liquidator just what to do about this Bermuda branch.'' He said meetings were scheduled for next week between Mr. Butterfield and the representative of the Canadian liquidators.

"We hope to get things sorted out next week. We are still hopeful that it will be possible to agree what should be done about the branch in a way that will suit all the policy holders.'' Accountant Mr. David Lines is the principle representative of the company in Bermuda.