also be up for sale, largely as a result of losses suffered over Hurricane Andrew, according to sources in the insurance industry.

News of the Bermuda-based property-casualty insurer's decision took the local insurance industry by surprise when word began to leak out on Tuesday.

Paumanock has failed to officially disclose how much it lost on Andrew. But the company's local boss Mr. Robin Spencer-Arscott indicated only last week that it would not have much of an effect on the firm.

Insurance brokers on the Island have been told that Paumanock's gross loss before reinsurance on Andrew is around $30 million.

Estimates on the firm's net loss, once reinsurance is taken into account, vary from between $10 million and $20 million.

Other losses caused by events other than Andrew are believed to have played a part in Paumanock's decision.

The company is owned by military aircraft manufacturer Grumman Corporation, which is based in Bethpage, New York.

The company's underwriting was done by Anchor Underwriting Managers, which is owned by the Aon Corporation and has offices at Cumberland House in Hamilton.

The effects on Anchor and its staff of Paumanock's decision not to continue writing new business were not known yesterday.

Neither Paumanock's chairman Mr. Edward Jacobs nor Mr. Spencer-Arscott, returned several messages.

An employee at Anchor said a press release was being prepared, which may be released today.