Securities and Exchange Commission had "declared effective'' its registration of 8.4 million commons shares at a price of $21 per share.

Of the shares to be sold, 7.25 million are being offered by the company and 1.15 million by certain selling shareholders.

The common shares have been approved for listing on the New York Stock Exchange under the symbol SD, subject to official notice of issuance.

The offering is being underwritten by a group of underwriters for whom Smith Barney Shearson, Lazard Freres, and Salomon Brothers are acting as representatives.

The underwriters have been granted an overallotment option to purchase up to 1.26 million additional common shares from the company.

Sphere Drake expects to contribute approximately $132.4 million of the proceeds from the offering to its operating insurance subsidiaries to increase their capital and their ability to write additional business.

The balance of the proceeds will be used to redeem 3 million worth of outstanding preference shares and for general corporate purposes.

Sphere Drake underwrites property and casualty insurance and reinsurance in the London market.

Its business predominantly consists of a wide range of marine and aviation and non-marine insurance and reinsurance business written in London.

The company also takes part in the alternative risk transfer market in Bermuda, where it owns Sphere Drake Underwriting Management (Bermuda).