Chubb Corporation chairman and CEO Dean O'Hare said he wanted laws put in place to stop so-called tax-dodgers going back to their “evil wicked ways”.

Mr. O'Hare has long tried to get a the so-called “loophole” in the United States plugged which allows US companies moving to Bermuda to cut their tax bills.

Speaking at 40th annual Risk and Insurance Management Society (RIMS) conference in New Orleans, Mr. O'Hare said it would be “wonderful” if United States legislators were successful in their efforts to close the so called Bermuda Tax “loophole”, but also said that he could not think of a better place to do business.

Speaking at a question and answer session in the afternoon, Mr. O'Hare said that he did not see as many of the tax “abuses” taking place now compared to a few years ago.

His company was one of four insurers lobbying Congress in the last two years to get the so-called loophole closed. But his stance has softened slightly since his company has backed new ventures on the Island.

When asked about new moves in Congress to stop companies moving to Bermuda to avoid taxes, he said: “I think it's wonderful. I think intelligent closing of the loophole makes a great deal of sense. I'm highly supportive of that.”

US lawmakers have been putting forward proposals to stop the exodus of companies wanting to reincorporate in Bermuda in a bid to lower their tax bills. Last week lawmakers in the US vowed to push for legislation that will halt companies reincorporating in tax friendly locations like Bermuda.

The Senate Finance Committee leaders met yesterday and said they would aggressively press for legislation that stops US companies from moving their headquarters overseas to cut taxes.

“Our legislation ... is designed to put the brakes on the potential rush to move U.S. corporate headquarters to tax havens,” said panel chairman Max Baucus, of Montana.

During this year two tax bills have been introduced by US legislators in the House of Representatives aimed at stopping US companies from relocating offshore, particularly to Bermuda.

The bills have been proposed by by Rep. Richard Neal and Rep. Scott McInnis and several American legislators have indicated they will put forward further bills, including Sen. Paul Wellstone and Sen. John Kerry.

In essence, the bills aim to levy US taxes on all income - including foreign revenues and sales - earned by corporations that reincorporate outside of the US.

The debate has largely focused on Bermuda-based companies such as Tyco, Global Crossing, Ingersoll-Rand and a company which has not yet redomesticated, Stanley Works.

Last week Weatherford International Ltd. and Leucadia National Corporation also announced plans to move to Bermuda to cut tax bills. But Mr. O'Hare said that companies he was involved with in Bermuda were not guilty of abuses.

He said: “I would point out to you that the practices that at least AWAC (Allied World Assurance Company, based in Bermuda), an organisation that I have significant operating involvement with, they are not guilty of the abuses.

“I would also say to you that I think the people who were guilty of the abuses probably mellowed at the point in time that we and others in the industry started to raise concerns about the loopholes. And we were not raising concerns about legitimate reinsurance arrangements. What we were raising concerns about were artificial situations which were designed solely to transfer profits that belonged in the United States, and move those profits offshore. While I don't see the abuses taking place today that I saw three years ago, I would say that it would be nice to have laws in place that would make it impossible for the offenders to slip back into their evil wicked ways.”

Responding to an earlier question posed by US based Claire Wilkinson of Lloyds publication, Insurance Day concerning Chubb's involvement in setting up ventures in Bermuda following September 11, Mr. O'Hare said: “I think there are significant new needs in the insurance business, significant new opportunities that in many ways can best be exploited in an environment like Bermuda.”

He said there was little regulation and an attractive tax environment and added: “Bermuda happens to be a very good place for an Insurance company to operate.”

Mr. O'Hare said: “In today's world, an insurance company without the advantage of a past, is one of the most exciting and wonderful things to be involved in. I think the opportunities are tremendous for companies like AWAC, one of our joint ventures with American International Group and Goldman Sachs, as well as the company started by Marsh that we are a major investor in through Trident (Axis Specialty).”