financing, Enterprise Reinsurance Ltd., has been initially capitalised at $100 million, with Bermuda-based CAT Ltd. as lead investor.

CAT first revealed last September their interest in forming a new Class 4 insurer in response to increased client demand for structured solutions for property, casualty, life and health insurance risks.

Enterprise Re's underwriting operations, conducted through Enterprise Reinsurance Ltd., are based in Bermuda, while the firm is headquartered in New York.

One of the pioneers in strategic risk financing, Jonathan Roberts, has joined the new firm as president. Mr. Roberts had previously headed AIG's worldwide effort in large strategic risk financing transactions. He has underwritten highly structured insurance and reinsurance transactions since 1982.

CAT Ltd.'s CEO Paul Hasse and president Charles Kline will co-chair Enterprise Reinsurance and its parent, Enterprise Reinsurance Holding Co.

Other investors include Employers Re, Chubb and Morgan Stanley Capital Partners (the founder and lead investor in CAT Ltd.).

Mr. Roberts said, "Our strategic partners are premier organisations in their respective fields and provide us broad distribution and syndication capabilities and access to insureds, insurance companies and financial markets worldwide.'' Regarding client focus he said, "We design and implement effective solutions tailored to the client's financial goals, such as protecting earnings or surplus from volatility or providing capital for acquisitions or growth.

"We call these solutions strategic risk financing because they generally accomplish strategic objectives of the enterprise as a whole. Both property/casualty and health/life insurers, as well as large commercial insureds, will be able to use Enterprise Re's skills, structuring expertise, and risk capacity for their own financial planning.'' Joining Mr. Roberts as chief operating officer is Steven Carlsen, previously chief underwriting officer for CAT Ltd. in North America.

Alan E. Goldberg, co-head of Morgan Stanley Capital Partners, noted, "Enterprise Re represents a unique opportunity to invest along side the most talented executives and a premier group of strategic partners in the evolving sector of customised risk financing solutions.'' Enterprise Re's owners are contributing capital, expertise and market access to the company. CAT Ltd. affiliate, Hamilton Services Ltd., is providing state-of-the-art technologies for risk analysis and portfolio management.

Employers Reinsurance Corp., the third largest general reinsurer worldwide, will utilise Enterprise's expertise in this specialised line of business to develop and offer financial reinsurance solutions to its client base.

The Chubb Corporation, a worldwide insurer based in Warren, New Jersey, will work closely with Enterprise Re on a global basis to create new opportunities in strategic risk financing in the insurance market.