which stopped writing new business last November, has been bought by its former chief operating officer, Mr. John Williams.

Mr. Williams made the acquisition through his newly-formed Bermuda-based exempted company Visor Investments Ltd., of which he is president and the sole stockholder.

He would not disclose yesterday how much he paid New York-based Grumman Corporation for the $20 million-capitalised Paumanock.

A new manager, Mr. John Kane's Powerscourt Group, which is located at Sofia House, Church Street, Hamilton, has been appointed to handle Paumanock, effective May 1, 1993.

Negotiations are currently underway to transfer about a dozen staff from its previous underwriting manager, Anchor Underwriting, which was formed in 1988 specifically to manage Anchor. Additional staff are also being hired.

This would leave Anchor, which employed 27 people before Paumanock went into run-off, with only a handful of staff to handle three or four large single accounts.

Anchor's boss Mr. Robin Spencer-Arscott said that the company would look around for "a new big account'' to build up the company.

Mr. Williams hinted yesterday that Paumanock was likely to be brought out of run-off, although he said he was not in a position to give details.

"The principal objectives are to professionally manage the run-off and search for new opportunities for the company,'' he said.

"It's a daunting and very exciting period for me. There are a lot more risks owning a company than working for one.'' Mr. Williams said reports in the industry that Citicorp was involved in the financing of the deal were not true.

Mr. Williams left Anchor exactly a year ago after reportedly falling out with Mr. Spencer-Arscott, according to sources in the industry.

But both parties said yesterday that any differences they may have once had have been resolved.

Mr. Williams said: "I decided last year that it was time to leave Anchor and seek new opportunities. There's no animosity between myself and anyone at Anchor or Aon.'' He added: "I'm looking forward to working with a lot of my old colleagues.'' Mr. Spencer-Arscott added: "There are no differences now. It is good news that the staff who were due to be made redundant from Anchor at the end of April have found new jobs. I'm really pleased for them.

"I'm glad that the name of Paumanock is being kept alive. For it just to die after all the work which we have put into it would have been a great shame.'' MR. JOHN WILLIAMS -- Paumanock's new owner.