Bermuda Fire & Marine Co. Ltd. was not insolvent in 1989 and had enough reserves for future liabilities, the former head of the company's international division asserted in Supreme Court yesterday.

Keith White, who headed Bermuda Fire's international operations from 1985 and 1989, was under cross examination from defence lawyer Elizabeth Gloster, lawyer for BF&M Ltd.

Mr. White said he did not think the company was insolvent and believed international losses were under control when he left to join ACE Ltd. in 1989.

"We had a much better understanding of the losses and we had more reserves than the London market was recommending,'' he said.

Under questioning, he said Bermuda Fire was following accepted market practice at the time in not reserving for possible pollution claims. He said the company believed policies excluding pollution coverage protected the company from such losses.

He described as "totally inaccurate'' the liquidator's claim that he left because he saw a "looming disaster'' for the company due to pollution claims.

"You regarded Bermuda Fire as being in a thoroughly healthy position,'' Ms Gloster asked.

"Yes,'' he said.

He labelled as "purely speculative'' any estimates made then for possible liabilities for pollution.

Mr. White said he would have reserved for pollution losses if he had been advised that the company faced a potential liability.

The cross examination continues today. Mr. White is testifying under subpoena.

Keith White: Says he left the company solvent in 1989 BUSINESS BUC