The decision of Lloyd?s of London insurer Hiscox to redomicile from London to Bermuda will not see a major increase in staff employed at Hiscox Bermuda, chief executive Bronek Masojada said yesterday.

Mr. Masojada said the domicile change of the parent company of Hiscox is expected to take place over the next few months and was first announced in November 2005 when the company capitalised the formation of Hiscox Bermuda.

Hiscox Bermuda opened in December 2005 to write a mix of worldwide reinsurance and group retail business and presently has a total of 14 staff.

?The centre of gravity of our insurance business is America and Bermuda,? chairman Robert Hiscox said.

?Seventy-seven percent of our business comes from outside the UK.

?A move of our domicile to Bermuda should increase the earnings and add to our international status.?

Mr. Masojada added: ?The redomicile will give more focus to Bermuda where strategy and decision making will be made and board meetings will be held regularly.?

On Monday Hiscox posted profits of ?63 million ($116.5 million) for the first half of 2006, down from ?88.1 million ($158 million) in the prior year period. The proposed move to Bermuda follows a strong start to Hiscox?s operations in Bermuda and Hiscox USA, which opened in March.

Hiscox Bermuda is on track to underwrite its target of $325 million this year and Hiscox USA has increased its forecast premium volume to $25 million from $15 million.

Overall, Hiscox reported a 43 percent increase in gross premium to ?625.1 million (917.5 million) in the first half of this year compared with the same period of 2005.

The increase was due to growth in its Bermudian and US operations as well as a surge in UK commercial and personal lines business following a recent UK advertising campaign. The volume of European business was static but profitable, Hiscox said.

?The domicile move recognises that Bermuda is a leading reinsurance market and clearly there are tax benefits and Bermuda?s regulatory framework is more flexible than the UK,? Mr. Masojada said. Mr. Hiscox said in interview with the Daily Telegraph: ?If you were starting a new insurance company, you wouldn?t start in London.?

The domicile change is subject to regulatory approvals, but the company?s board has already approved a corporate reorganisation to create a new Bermuda domiciled holding company, to be called Hiscox Limited.

If approved by regulators, shareholders would receive an equal number of shares in the new company to replace their existing shares in Hiscox Plc.

Commenting on the redomestication, a spokesperson for Lloyd?s of London said: ?Hiscox has made it clear for some time that they are doing this for operational reasons, and that it in no way reduces their commitment to writing a significant element of their business through Lloyd?s.?