shareholders of closely-held Bermuda-based excess liability insurer, SELIC Holdings, Ltd., the parent of Starr Excess Liability Insurance Co.

AIG owned about 23.9 percent of Starr Excess having founded the insurer together with six other investors. The other significant insurance group involved was General Reinsurance Corp., which had some ten percent of the company.

AIG has purchased the nearly 76 percent of the shares of the company it didn't previously own, for an undisclosed sum.

A statement yesterday described the sellers as insurance and financial institutions and a small number of private investors.

AIG chairman, Maurice R. Greenberg said: "By acquiring full ownership of Starr Excess, AIG will be able to better position the company to participate in the US market, while it continues as a leading excess carrier in the Bermuda market.

"Starr Excess will now have access to the full range of AIG's resources, and will be able to develop new products and opportunities in the United States.

"We fully intend that Starr Excess will continue as an important participant in the Bermuda market through its office in Bermuda.'' Starr Excess, which began operations in 1993, wrote premiums of $82.5 million in its first full year to December 31, 1994, concentrating on excess liability and excess D&O liability.

By 1995, written premiums exceeded $100 million, and peaked at nearly $110 million for the 1996 year, all but $9 million of which was excess liability premium.

But the market softness caught up to Starr Excess in a big way during 1997.

Premium for the first nine months was down 21 percent to $65.9 million.

But in the four years since inception, at least up to the third quarter of 1997, Starr Excess had no losses reported that required a specific case basis reserve or payment.

Last summer, the company won an "A'' (Excellent) rating from A.M. Best, which forecast a stable outlook for the insurer.

Best said the rating was based on an in-depth analysis and evaluation of Starr Excess' results for its first three years of operations through 1996 and discussions of early 1997 operations.

Best said in August: "This rating reflects the Bermuda-based company's worldwide position in the excess liability insurance market, conservative balance sheet, talented management team and strong capitalisation.'' Best said the company had consistently superior earnings and 250 policyholders that operate in widely diverse industries, including many of the largest industrial enterprises in the world.