a tighter regulatory environment for the Island's captive and reinsurance business.

There was widespread agreement on both sides of the Upper House that the legislation was timely and well thought out.

Government Senator Lynda Milligan-Whyte said Bermuda had seen much development away from the pure captive. Now there were new group captives and association captives.

This legislation divides companies into classes depending on the type of business activity they are involved in.

Single parent captives comprise class one and they are companies with a share capital minimum of $120,000. Class two is reserved for those group or association captives that underwrite each other's risk. They are to have capital and surplus of $250,000.

Those companies underwriting third party risk such as Ace and XL must have minimum capital reserves of $1 million. Finally, class four companies have a minimum capital requirement of $100 million.

Class four and class three type companies have to get an annual actuarial opinion on the adequacy of their loss reserves. Class two companies have to do this every three years.

Sen. Milligan Whyte said the purpose behind the regulations was "to protect the integrity of our jurisdiction.'' PLP Senator Terry Lister, meantime, said the legislation was a lasting tribute to outgoing Registrar of Companies Mr. Malcolm Butterfield.

He praised the International Advisory Committee for its work often with no direct financial gain.

Sen. Lister questioned whether the Registrar's department had enough staff given the increased demands that the legislation placed on them. And he wondered whether the need for actuarial reports would increase the cost of business unnecessarily.

Sen. Milligan Whyte said there were provisions for at least two extra staff in the Registrar's office and there could be more staff if needed.