The former head of Bermuda Fire & Marine Insurance Co. Ltd. international division "had doubts'' about the competence of some staff when he was put in charge in 1985, a court heard yesterday.

Keith White, who headed Bermuda Fire's international operations from 1985 to 1989, said the division, which had made a disastrous foray into the London insurance market by the time he took over, "needed some work''.

But he said by the time he left to join ACE Ltd. in 1989 he was confident about the competence of the people he had brought on board.

"Yes, I had doubts when I inherited it,'' he said in response to cross examination by Ian Croxford, lawyer for Bermuda Fire auditor Cooper & Lines.

He affirmed that when he left in 1989 he "had done pretty well everything that needed to be done'' by ensuring that "careful and competent'' people were staffing the division.

"And very experienced,'' Mr. White added.

He expressed confidence in the qualifications and experience of Irmgard Viera who succeeded him in the position. Ms Viera had international experience through dealing with captive companies and US business and he felt she knew the market.

Asked whether he believed whether Bermuda Fire was a "well run company'' when he worked there, Mr. White said: "Yes, I believe so.'' He affirmed that the board of directors "seemed to be interested'' in Bermuda Fire's business. He described former chairman Charles Collis, who died last year, as a "dominant'' personality on the board and who directed meetings as "any good chairman would''.

He agreed that director Donald Lines had a "clearly powerful personality'' who "didn't always see eye-to-eye'' in business matters with his brother David Lines, a partner of Bermuda Fire auditor Cooper & Lines.

"There was a frostiness in the relationship,'' Mr. White said.

Mr. White had previously testified that he did not think Bermuda Fire was insolvent and believed international losses were under control when he left in 1989.

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.

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

BUSINESS BUC