ACE Ltd.'s British subsidiary has been forced to defend itself against market scuttlebut, after the company appointed new cargo underwriter Gloria Davies.

Chairman of ACE UK Ltd. Bill Loschert this week said rumours that her offered salary was 1 million or $1.68 million over four years were completely untrue, Insurance Day has reported.

The denial came as Ms Davies joined ACE UK on Monday to take responsibility for underwriting the cargo and specie accounts for syndicate 488/2488.

Her move to ACE comes just two months after she was appointed senior cargo underwriter at Hiscox syndicate 33, and one month after the major restructuring in which some 20 percent of ACE UK's workforce lost their jobs.

Mr. Loschert said Ms Davies' salary was in line with that paid to Phil Pavis, who previously held the position. He declined to reveal how much that was.

John Charman, chief executive of ACE UK, commented: "We are extremely pleased to have attracted someone of Gloria's standing and ability. She will become a much-valued member of our highly successful underwriting team.'' NO LINK WITH EVEREST -- BT BUC No link with Everest -- BT Bankers Trust Corp. has moved to dispel speculation that it was facing big losses from positions taken with Bermuda-based hedge fund, Everest Capital.

Bankers Trust said it had no relationship with the firm.

The denials came amid continuing concerns about hedge funds, with Bankers Trust disclosing on Wednesday it had about $1 billion in exposure to such funds.

To allay fears it may face serious losses from its hedge fund deals, the bank said some 99 percent of such exposure was collateralized with cash or Treasury bills -- that the bank was almost fully protected from any financial problems at any hedge funds with which it has an investment or trading relationship.

Bankers Trust is the second big bank this week to publicise its hedge fund exposure, the New York Times reported, a move prompted by the forced bailout last week of Long-Term Capital Management.

On Tuesday, Chase Manhattan Corp. said it had $3.2 billion in hedge fund exposure, with about 72 percent of that amount backed by cash and Treasury bills.

Bank stocks have generally taken a beating of late, but the fall in Bankers Trust's stock was more dramatic. It closed Wednesday at $59, down about three percent for the day, but well below its 52-week high of $136.4375, reached in April.