purpose homeowners insurance company in the state of Florida.

US-based DeSoto Insurance Co. was formed as a subsidiary of Glencoe Insurance Ltd., the Bermuda-based insurer that is approved in the state of Florida as an excess and surplus lines carrier.

Glencoe principally writes catastrophe exposed property insurance and is rated "A-'' (Excellent, VII) by insurance rating agency, A.M. Best. Glencoe is owned by Bermuda-based RenaissanceRe Holdings Ltd. and Underwriters Reinsurance Co.

DeSoto Insurance began this month with $10 million in starting capital, and has initial authority to write up to 32,000 homeowners' policies by depopulating risks now insured by the Florida Residential Property & Casualty Joint Underwriting Authority (FRPCJUA).

The first portfolio of policies assumed in January will consist of about 13,500 risks.

DeSoto chairman, Keith S. Hynes, said, "I am pleased that DeSoto is the first special purpose homeowners insurance company to be formed in Florida.

"We were able to form the company and complete the initial takeout of policies from the JUA in less than six months time.

"We are looking forward to assuming additional blocks of business from the FRPCJUA in 1998, as the first step in developing our presence in the Florida residential market.'' The president of the new company, Robert L. Ricker, was formerly a senior officer of the FRPCJUA, responsible for attracting new insurers to the state and structuring depopulation deals.

Before that, he was appointed by Florida Insurance Commissioner, Bill Nelson, with primary responsibilities centred on the commissioner's efforts to revitalise Florida's homeowners insurance market.

Mr. Ricker had extensive experience with several primary insurers prior to his new affiliation.

He said, "I am extremely excited by the opportunities available to DeSoto through its affiliation with Glencoe.

"DeSoto's management team will combine its unparalleled knowledge of the Florida marketplace with Glencoe's catastrophic risk analytic and capital management skills.

"DeSoto will aggressively deploy these combined capabilities to bring much-needed new capacity to the Florida homeowners marketplace.'' The company's base of operations will be in the state of Florida and will include the support services of several providers of administrative claims services, also located in Florida.