in Bermuda -- and the most significant casualty is the Island's most influential insurance man, Bermudian Brian Hall.

In a statement obtained by The Royal Gazette , J&H said to staff last week that Mr. Hall was electing to retire from the firm but would in future be a "consultant/advisor'' to J&H Marsh & McLennan. They look forward to his "continuing counsel''.

Marsh & McLennan (Bermuda) president Andrew Carr has been named president and CEO of global captive management for the merged company.

Mr. Carr, who will report to John Deitchmann in New York, will remain based in Bermuda. The merger of "Marsh Mac'' and J&H brings billions of dollars in captive premiums under him -- more than $2 billion in Bermuda alone.

The announcement said: "Captives continue to be flexible and powerful resources for our clients, and we are committed to further differentiating our capabilities and expanding our activities in this business under Andrew's and John's leadership. Additional management responsibilities within global captive management will be announced shortly.'' Between the two firms on the broking side, it is estimated that they were responsible for more than half of placements with leading Bermuda-based insurers ACE and XL.

"Brian is one of the true pioneers in the world of captive (insurance) management,'' said the statement, which was circulated to J&H staff on Friday.

"He founded his own captive management company in 1969. It later was merged with J&H (Bermuda) Ltd. and Brian subsequently led the company's successful efforts in positioning captives as a key risk management tool.'' Meanwhile, in anticipation of the closing of the March 27 deal for Marsh Mac to buy J&H, filings with the US Securities & Exchange Control show J&H intended to move $75 million out of its Bermuda operations.

The filings state: "US Federal taxes associated with remitting such funds approximate $26 million, of which $16 million have previously been provided.'' Last week's announcement confirmed months of speculation that the group could find no permanent place for Mr. Hall in the new Bermuda structure.

Sources close to J&H said Mr. Hall informed staff at an emotional meeting on Thursday.

Having been a director of the former J&H global empire, he is leaving behind a loyal and shocked group of employees, sources said. And it has led to some confusion among them as to who else may go.

Knowledgeable industry people feel certain that more departures are likely as a result of the corporate consolidation. After weeks of uncertainty about personal futures, it is believed by staff that in the wake of Mr. Hall's departure, other jobs are not safe.

The Marsh Mac bosses have made no secret of their desire to effect worldwide redundancies to eliminate duplication in the merged companies.

It was estimated that as much as five percent of the global workforce of the combined companies could be cut. It would go a long way toward excising a half a billion dollars in annual worldwide expenses within two years of the merger.

Redundancies have already hit the London market.

J&H, a huge captive manager and insurance broker, was bought by Marsh Mac for about $1.8 billion, one third payable in cash (about $600 million) and two thirds payable in Marsh Mac stock (about 9.8 million shares).

One industry insider conceded: "It's no secret that Brian did very well as a partner, especially as a result of the Marsh Mac takeover. But his industry knowledge, especially relating to Bermuda, has him head and shoulders over others in those companies. It would have been in the best interest of the new structure to have kept him as leader at least for the next couple of years.

"He would have been extremely valuable to them while the dust clears over the merger, at the least to ensure smooth transitions as a well-respected Bermuda figure.'' That respect was evident this weekend, when Finance Minister Grant Gibbons was asked about Mr. Hall's continuation as chairman of the influential statutory body, the Insurance Advisory Committee (IAC).

Mr. Hall, as a representative of the industry, has long been chairman. Dr.

Gibbons said that he has had no discussions with Mr. Hall about the issue, but hoped that he would "continue his valued service''.

At least one industry insider saw this as an opportunity for Mr. Hall to devote more time to the IAC and the Bermuda Foundation for Insurance Studies, aimed at encouraging and helping more Bermudian students to enter the insurance business.

But our source said: "When I heard that he had resigned (from J&H Marsh McLellan, Inc.), I thought it would not be surprising to see him coming back in another capacity. I heard he was offered a position in the company, but not the role he wanted -- one where he would not have had any real control, and he turned it down.'' OUT -- Brian Hall IN CHARGE -- Marsh & McLellan's Andrew Carr