Bermuda.

"There is probably a couple of billion in capital showing up in a variety of companies,'' one key player in the Bermuda reinsurance sector said.

Six or seven large new reinsurance companies are being established, he said.

"They're all coming in here, and they're all going to need people -- that means employment and quality jobs.'' Contributing about $450 million in foreign currency annually to the Bermuda economy, international business recently surpassed tourism as the Island's biggest business.

While there are signs that tourism is moving out of its slump, the strong international business sector appears poised to surge.

General Reinsurance, Goldman Sachs and Johnson & Higgins, Centre Re, American International, and USF&G are among companies which are involved in new reinsurance companies which have either established in Bermuda in the past month or will be in operation by October.

Mr. Donald Lines, president and chief executive officer of the Bank of Bermuda, said several new companies "are in the process of being formed, or are almost formed,'' and the amounts of capital are large.

The number of new jobs is not expected to be large at first, but there is potential for growth and spin-off benefits for other sectors of the Bermuda economy.

"You don't start an insurance company with 100 people,'' Mr. Lines said. But theoretically, the new companies "could grow to the size of ACE or XL.'' Premier the Hon. Sir John Swan said not only reinsurance, but the trust business is growing in Bermuda.

A couple of major trust companies have received licences, "and there are more in the making,'' he said. "Then, you have some of the existing companies that are here that are expanding.

"There will be people requirements, and there will be service requirements, and people coming in here will require a certain amount of housing, and so forth,'' he said.

The growth potential depends on confidence, he said.

The recent growth in the reinsurance sector is partly attributed to the high number of natural and other disasters recently and a series of disastrous years for major insurance market Lloyd's of London.

The catastrophes were hard on insurance companies with many US insurers taking heavy losses. Survivors have increased reinsurance to avoid repetition of a situation in which lower premiums combined with record payouts. the increased demand is likely to lead to higher premiums for reinsurers.

The large resulting jump in reinsurance assets in Bermuda should not be confused with growth in the number of international companies on the Island, Finance Minister the Hon. David Saul said. There, steady growth is expected at a rate of about ten percent a year.

Due to the recession, it is believed income from international business slightly surpassed that from tourism in 1992, he said. In the future, it was hoped the two would be relatively equal, with steady growth experienced in each.

In the number of international businesses, "we are not expecting any great blips''.

The number of jobs that could result is more difficult to estimate, but with related increases in conventions and other activities, more jobs could be expected in computer, secretarial, restaurant, and other areas.

In the last five years, the number of jobs in international business has grown, particularly among Bermudians, Dr. Saul said. Only about 600 of 2,000 people employed in the sector are non-Bermudians, he said.

Tax changes introduced by President Clinton are hiking the cost of doing business in America "fairly dramatically,'' an international business source said.

In addition to reinsurance, financial services, brokerage and stock traders, and petroleum management jobs are moving to Bermuda, he said. In addition to tax savings, "it's really the stability of the Island''.