taken by The Shipowners Insurance and Guaranty Co. Ltd. (SIGCo) in the commercial Certificate of Financial Responsibility (COFR) market.

SIGCo was incorporated to provide COFR guaranties to the US Coast Guard on behalf of ship owners, as required under OPA/CERCLA. Bermuda-based SIGCo is the restructured replacement to First Line, which would become the main local competitor to another Bermuda COFR guarantor, Shoreline Mutual.

The USCG figures of COFRs issued as of March 5, show First Line with 1,866 or 41.9 percent of the 3,819 dry tanker COFRs issued and SIGCo with 568 or 12.8 percent. First Line also has 20 percent of tanker issued COFRs and 37 percent of the two combined.

But combined with sister vehicle, SIGCo, they provide 54.7 percent of dry cargo issued COFRs (2,434) and 52 percent of the tanker issued COFRs (670), combining for 3,106 or 54.1 percent of the two.

The nearest commercial rival, Shoreline, provides 1,436 dry cargo (32.3 percent) and 533 or 41.3 percent of the COFR tanker. There combined total is 1,969 or 34.3 percent.

SIGCo's Neil Clemens said, "Measured by its rate of growth, SIGCo is already the leading provider of COFR guaranties for dry cargo and tanker vessels.

Based on current trends, SIGCo will be the leading provider of such guaranties by all measures (and without reference to First Line) by the end of the summer.'' Mr. Clemens said, "Recent changes in the marketplace have generally been positive for shipowners and they have found SIGCo's innovative structure and competitive pricing to be most attractive. The success of SIGCo in its first nine weeks of business since December 28, 1996 is testimony to that.

"Of those shipowners renewing guaranties to date, the vast majority of First Line clients, plus clients of Shoreline and other guarantors, have moved to SIGCo. In addition, SIGCo has provided the majority of new guaranties issued since December 28, 1996.'' SIGCo is licenced as a Class 3 company with paid up capital of $25 million, and a corporate structure which provides that its ordinary shares are beneficially owned in trust for its ship owner clients. Those same clients will be board of directors of a private trust company that will act as trustee.

Stockton Re, ACE Insurance and Global Capital Re, together with a number of other investors provided the redeemable share capital. These shares are to be phased out over time, leaving ownership of SIGCo solely in the hands of the ship owner's trust.

SIGCo began providing COFR guaranties up to $400 million for shipowners who are members of International Group and other approved P&I Clubs, as of December 28.

A comprehensive reinsurance programme is in place to protect SIGCo against, exposures of $399 million in excess of a retention of $1,000,000, per vessel per incident.

LEADING COFR SUPPLIERS Company Dry Cargo Tanker Total Ships Ships Ships First Line/Sigco 2,434 672 3,106 Shoreline 1,436 533 1,969 Arvak 17 52 69 Source: United States Coast Guard, March 5, 1997 m BUSINESS BUC