Terra Nova (Bermuda) Holdings Ltd. has acquired $107.5 million ( 64 million) of new Lloyd's capacity for the coming 1999 underwriting year.

London subsidiary Terra Nova Capital Ltd. -- the Bermuda insurer's corporate member at Lloyd's -- was an active participant in each of the six Lloyd's capacity auctions held between July 14 and September 23.

The capacity auctions, sponsored by the Corporation of Lloyd's, is the principal means by which individual and corporate members acquire and dispose of capacity or their commitment to support the underwriting business in selected syndicates.

Terra Nova's total expenditure, including auction administration fees, was $5.7 million, or an average price of 5.3 cents per dollar of capacity. Terra Nova confined its purchases to the eight syndicates managed by its wholly owned subsidiary, Octavian Syndicate Management Ltd.

Terra Nova Capital was the successful bidder on approximately 90% of the Octavian capacity that was transferred.

Terra Nova's president and CEO Nigel Rogers said, "These purchases in the auction, along with additional unsold capacity which may come to Terra Nova at no cost, will bring Terra Nova's share of aggregate capacity on the eight syndicates managed by Octavian to approximately 77% for the 1999 underwriting year, up from approximately 60% for the 1998 underwriting year.

"This newly acquired capacity continues Terra Nova's strategy of acquiring capacity when warranted by market conditions and price.'' Terra Nova (Bermuda) Holdings Ltd. is the holding company for five wholly owned operating entities -- Terra Nova Insurance Co. Ltd. in the UK, Terra Nova (Bermuda) Insurance Co. Ltd., Corifrance in Paris, Terra Nova Capital Ltd. and Octavian Syndicate Management Ltd. which manages eight Lloyd's syndicates in which the Company has a participation.

Through these subsidiaries, the company underwrites a diverse property, casualty, marine and aviation insurance and reinsurance business on a world-wide basis.