Bermuda figurehead companies ACE and XL both used leading insurance conference RIMS as their launch pad yesterday for new products in the US market.

In XL?s case, its US insurance arm announced an aggressive strategy for moving into the primary casualty market in the US. XL also announced it would launch an excess workers compensation division.

Details of XL?s plan to move into the primary casualty in the US, which was first made public last October, were disclosed at the annual meeting of the Risk and Insurance Management Society (RIMS) being held in San Diego this week.

With all regulatory filings in hand, and two clients signed up, the company said it was ready to move into that market with ?conservative? predictions of having signed up to 50 new clients in the first year.

At a Press briefing, CEO of the Bermuda-based giant?s insurance arm ? XL Insurance ? Clive Tobin outlined a strategy said to focus on ?major US corporations?. Mr. Tobin predicted strong buy in from the market, and said XL would not have entered the market unless it thought it could become one of the ?top providers? in this area.

He said: ?Serving the primary commercial casualty market is a vital, missing piece of our strategy in the US where we are largely known as a specialty insurance carrier. Judging by the market response thus far, it is clear that buyers are looking for alternative carriers with excellent levels of security in the AA range in a market in which the number of highly-rated insurers has diminished over recent years.

?With our strong financial ratings, our recognised brand strength and technical expertise, we will be able to meet this demand while building closer, long-term relationships with an expanding customer base.?

Mr. Tobin added that the initiative was ?an important strategic diversification designed to strengthen XLI?s position in the US market?.

The move follows the company already having broken into the primary casualty market in Europe, although they said their approach to the American market would be with a different business model.

Mr. Tobin said that XL moved into the European market, with its writing of primary business being said to have brought the company ?closer to customers?, after its acquisition of Winterthur International.

In contrast its breaking into that area in the US does not follow an acquisition, and has meant the company had to set up the infrastructure to support the new business.

XL said underwriting activity for the new business was based in New York, while there were to be sales offices in Chicago and Los Angeles.

The company will outsource claims management to ?a network of third party administrators?, with clients having some say on who handles claims for them.

XL said this was one of the advantages of their product, predicting that would-be customers would be attracted to the flexible structure of the product.

Mr. Tobin predicted that as a result of moving into the primary casualty market in the US, clients would also be inclined to place other business within XL?s global operation.

Dennis Kane, executive vice president responsible for primary casualty risk management programs, pointed out the market XL would pursue: ?We will target insureds with expected primary losses in workers compensation, general liability, and auto of $1.5 million or more.?

The excess workers compensation operation, which is also located in New York City, will target qualified self-insureds with retentions of $350, 000 or higher.

Meanwhile, Bermuda insurance giant ACE also announced plans, on the US side, to get into a line of business that is seeing increasing demand ? kidnap and ransom coverage.

ACE announced, also during the RIMS conference, that its retail operating division in the US ? ACE USA ? was now offering Kidnap & Ransom (or K&R) coverage for companies with international operations, or staff who travel overseas on business.

ACE Specialty Products president Ed Zaccaria, said demand for this type of coverage followed increasing volatility in economic and political environments around the world. ACE?s new policy will provide coverage for ransom and extortion expenses, in-transit loss of ransom, legal fees, incident response, medical costs, and death and dismemberment.

Actual, alleged or threatened kidnap incidents, as well as extortion demands threatening bodily injury, property damage, product adulteration and disclosure of proprietary information; detention of a person without ransom demand; and hijacking are to be covered under the new policy.

Executives from both ACE and XL are in San Diego taking part in RIMS this week, with the heads of both companies ? Brian Duperreault and Brian O?Hara ? taking part in a panel discussion on the Bermuda market on Wednesday.

Evan Greenberg, who is next in line for the CEO spot at ACE with the announcement earlier this year of the promotion taking effect on May 27, is also expected to be at the RIMS conference today.