Centre Reinsurance (Bermuda) Ltd. and its subsidiaries will separate its property and casualty reinsurance operations from its corporate activities.

The leading developer of innovative insurance and reinsurance solutions said the move is prompted by the dramatic growth in its insurance, finance and risk management business.

It follows the combination of the reinsurance operations of Zurich Reinsurance Centre, Inc. and Centre Reinsurance Co. of New York under the umbrella name, Zurich Reinsurance (North America), Inc.

This combination will be extended over the next three years to other parts of the company's worldwide operations, principally in London, Dublin and Zurich, with the aim of better serving the needs of insurance industry clients.

The companies serving mainly corporate customers will be renamed Centre Solutions, while the reinsurance units will, at present, retain the name Centre Re Division, all eventually operating under the global business of Zurich Re.

In the rest of the world, Centre Solutions and Centre Re Divisions will continue operating as one business until the transition of all reinsurance business to Zurich Re can be achieved using a similar model employed in the US.

Centre Solutions CEO, David Brown, who continues to lead the Bermuda business, described the changes as "evolutionary rather than revolutionary.'' Established in 1988 and capitalised with $250 million, the firm's radical rethinking of the business of reinsurance has created a leading player of world reknown with $4.5 billion in assets at December 31.

Having radically altered the method of reinsurance exchange, Centre Re has also brought new insights into the broader financial risk protection markets, creating solutions for both insurance and non-insurance corporations.

Centre Re has developed solutions in diverse areas such as multi-risk programmes for major firms providing coverage for traditional insurance risks, non-traditional and financial risks, residual value protection or credit enhancement to help companies optimise asset finance, and insurance-based financing in support of domestic and international infrastructure projects.

A growing list of customers in this area include major domestic and multi-national corporations, professional partnerships, investment funds, leasing companies, financial institutions and governmental agencies.

Centre Re has developed the expertise to apply derivatives and securitization in the management of risk on behalf of their clients.

Although Centre Re has already executed a number of transactions using these vehicles, this is an area of intriguing possibilities and the reinsurer intends to remain on the leading edge of these developments.

The company said: "At the same time, Centre Re's parent company, the Zurich Group, has been executing a major drive to develop a world class global reinsurance company under the leadership of Steven Gluckstern.

"It is a logical part of the concept to combine the reinsurance skills of Centre Re with those of Zurich Re units around the world so customers can access all of the Zurich Group's reinsurance expertise through a common entry point.''