absence as a major sponsor of one of the new catastrophe operations based in Bermuda.

The reason was explained in stark language in a recent publication produced by the reinsurer, called Topics.

Munich Re has come to some alarming conclusions about the stability of Bermuda as a market place for the new catastrophe reinsurers.

It derogatorily describes the practice of professional reinsurers providing 15-20 percent of funds to set up a joint reinsurance company with venture capital investors as "the latest fashion''.

And it categorically states: "We do not wish to be a part of this''. "As far as we are concerned, we also feel that the political, fiscal and supervisory conditions in Bermuda cannot be considered stable or secure enough for such ventures''.

The column in Topics, headed "Outside the Bermuda Triangle'', maligns the new capacity in Bermuda as "arising out of opportunistic motives''.

"For Munich Re, there is a fundamental reason why we should not be involved in such a venture. Our potential partners in such joint ventures from the capital venture markets have to pursue quite different interests to us,'' according to Munich Re, a large proportion of whose business is said to be generated in Germany.

Why is it then that Munich Re was reported to be one of the investors in American International Group's new excess liability carrier Starr Excess Liability Insurance Company at its inception in June last year.

In October last year, it was reported that only $100 million of Starr's $500 million capital had been fully paid up. At that time, the company intended to make further pro rata capital calls on its shareholders, which is believed to include Munich Re.

A spokesman from AIG was unavailable to confirm Munich Re's involvement with Starr Excess and IPC Re as Business Diary went to Press.

* * * BUC A US company that researches the background of job applicants has found that candidates are increasingly lying about the degrees they have earned.

Mr. Edward Andler, whose company, Certified Reference Checking Co., does background checks, said that one out of 12 job candidates lies about a college degree, compared with one in 15 three years ago.

Many liars get away with it, but others trip themselves up. Mr. Andler recalls one applicant was caught claiming he went to the University of Colorado in Denver. The school is actually in Boulder.

* * * BUC Mrs. Anne Marie deFontes, assistant manager of BF&M Life Insurance Company, may be better known as a key figure in Bermuda's canine world, but she has earned numerous accolades in the insurance business.

She has recently earned her Fellowship of Life Management Institute (FLMI) designation, which makes her recognised throughout the life and health insurance industry as a knowledgeable and informed professional.

She had to complete about 12 courses in diverse subject ranging from insurance to law, economics to marketing and also computer studies.

Fellow FLMI designation holder, Mrs. Judy Panchaud, at BF&M Life Insurance Company, described the courses as "not that easy''.

Mrs. deFontes, who is originally from Canada, also earned her MBA in 1993, and completed the three courses relating to group insurance in the HIAA programme.

She is currently enrolled in a sequential degree programme leading to an MA in Finance, and in the Life Office Management Association Group Insurance, which will give her a second area of specialisation for the FLMI designation.