The Bermuda office of Odyssey Re (the former Sphere Drake) has been hit by the departure of two key underwriters.

But top executives are awaiting the result of an ongoing underwriting operational review before deciding on replacements, if necessary.

Just last week, they accepted the resignations of their Alternative Risk Transfer (ART) underwriters, Bruce Jones, who had been with the firm since shortly after its Bermuda inception in 1990, and Richard Asprey.

Robert J. Forness is chief operating officer of Odyssey Re companies in London and Bermuda. Mike Mather is senior underwriting director and is conducting the review.

They said the departing underwriters were no longer in the office as of this week, leaving one ART underwriter in Bermuda for the time being.

But Mr. Mather said, "Even though this is a large underwriting void, we have an experienced staff that remains. There is no crisis. We will still be able to manage the ART business.

"Given the talent we have, perhaps, we can re-deploy some of the resources differently than they have been used in the past and properly service the account. The situation today is manageable.

"While there has been no material change in business plans for the Sphere Drake part of the group, at least today, part of my review is to take a look at the operations of the underwriting in London and Bermuda, make assessments and see if there are areas where we can improve our business.

"Having just joined the group, I am busy introducing myself to new people and new portfolios, before forming a business plan on a go-forward basis.

"The two underwriters leaving us will be missed. And while there is some urgency for me to recommend how we fill the void, there are any number of options open to us.'' Mr. Mather spent five years in Bermuda from 1980 to 1985, with Exxon captive, Ancon Insurance Co., S.A., before joining Trenwick America Reinsurance Co. in Connecticut. He joined the Odyssey Re Group in December.

The restructuring of Sphere Drake by its new owners, under the new Odyssey Re Group, has not yet included a change in the current business plan.

Over the last two and a half years before being acquired, Sphere Drake had increased reserves by $90 million and reduced the lines of business from 17 to the profitable core of six.

The executives said the re-branding since the acquisition has led to the elimination of Sphere Drake Holdings Ltd., the London and Bermuda holding companies, which have been unwound. What remains are the operating companies.

Mr. Forness said that the group wants to ensure there is underwriting autonomy in the individual offices, while sharing resources. Senior managers are to meet this month in Bordeaux, France, to discuss the group's future.

He said, "We are committed to the Bermuda business. Apart from the ART business we write here, what often goes unnoticed is the property catastrophe account. It's been one of the most successful accounts in the office for the last five years.

"Our capable team has produced a significant stream of profit. It's a very proven underwriting team. They write about $100 million net premiums a year.

"Like our other business, we are motivated by underwriting profitability, as opposed to top line growth. We also are keeping expenses down.''