Two Bermudians behind AME Re, a captive insurance company for the African Methodist Episcopal church, are planning to set up other modern financial vehicles which will not only save money, but also generate revenue for the church.

Nalton Brangman and Rev. Dr. Leonard Santucci are the brains behind the new ideas which together could save tens of millions of dollars for the church around the world.

And they say that the money the church saves can be used to save souls instead of lining the pockets of large corporations.

In January The Royal Gazette reported that the AME church, which has 11 churches in Bermuda and three million members and 7,000 churches world-wide, was to use $5 billion of its assets for its own insurance coverage through AME Reinsurance Ltd.

The company, incorporated in Bermuda and managed by Marsh McLennan in Hamilton, international specialists in insurance company management, is believed to be one of the first captives set up by black Bermudians.

It was also the first foray of the church into modern ways of money management.

"We are looking at other vehicles of economic development,'' said Rev. Dr.

Santucci, who is secretary of the board of the new company, and training development coordinator at Bermuda College. "It will be designed to save and generate money. It will reenergise the financial basics of the AME church.'' Mr. Brangman, who is vice chairman of the board of AME Re and runs his own fire and security systems company, said: "Ideally the objective is to increase the church's outreach and we can save more souls. And we need to feed those souls and train them, or we will lose them. This is the biblical mission of the church.'' Mr. Brangman and Dr. Santucci would not yet go into details of what kind of financial organisations they will be setting up, but have been in constant touch with the bishops who head up the church.

But savings and added profits could be generated through setting up offshore banking facilities and subsidiaries which would bring in millions of dollars to Bermuda.

"This is a noteworthy time for us,'' said Mr. Brangman. "Sixteen months ago we were struggling to make something out of a vision, and that has now been made a reality. And there is more to come and we will all be the better for it.'' The AME church operates throughout the continental United States, parts of Canada, Bermuda and the Caribbean, England and central and southern Africa.

AME Re is structured and registered as a captive insurance company and both men have been working closely with Jill Husbands at Marsh and Barla Nadarajah of Milligan-Whyte & Smith in creating the structure for the church.

A captive is a wholly owned subsidiary of its parent company that insures part or all of the parent company's risks. It is becoming an increasingly cost-effective way for large corporations and organisations to have captive insurance companies.

The main benefits include saving on insurance costs, the ability to insure some risks that may be virtually uninsurable in the open market and the opportunity to manage and minimise risks within the group.

Bermuda is one of the leading captive insurance centres in the world, with currently more than 1,500 international insurance companies registered on the Island. By incorporating a captive in an offshore financial centre there are additional tax savings for the company.

Signed, sealed and delivered: Earlier this year AME Re was officially launched by officials from the AME church and the two Bermudians behind the scheme.

From left, Bishop Garnett Henning, Rev. Dr. Leonard Santucci, Secretary of the Board of AME Re, Bishop Philip Cousin Sr, chairman of AME Re, Bishop John Adams, senior Bishop (seated), Nalton Brangman, vice chairman of the board of AME Re and Rev. Malcolm Eve, local Presiding Elder.

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