Bermuda's captive insurance market is not under siege after the United States tax court ruling against the United Postal Service, experts say.

Local US tax and insurance authorities insist no ripples from the scathing ruling by tax court judge Robert Ruwe would be felt here -- the world's biggest captive market.

And Bermuda-based Overseas Partners Ltd. -- which UPS set up in the 1980s to reinsure packages valued over $100 -- issued a statement that it "has every intention of continuing business as usual...'' Insurance Advisory Committee marketing chairman Roger Gillett said the UPS case involved "circumstances very specific to this one company''.

"There is no general application to the Bermuda market,'' he insisted. "This kind of thing was rare back in 1984 but it's even rarer now.'' US tax expert, KPMG senior manager Patrick Hackenberg, agreed the case would have little impact here.

"The judge found there was not a business and economic objective in creating the captive,'' he said. "Everyone these days realises that the economic and business objectives have to be met.

"That was not the case in 1984. Back then there were tax objectives, but those aims are not the primary concern these days.'' BUSINESS BUC