Bermuda's newest reinsurance company is expected to be up and running in ten days with $1.5 billion of equity capital.

Allied World Assurance Company, Ltd (AWAC) is a joint venture between American International Group, Inc. (AIG), Chubb Corporation (Chubb) and GS Capital partners 2000, L.P. (GSCO), an investment fund managed by Goldman Sachs & Co.

Based in Bermuda, AWAC will underwrite worldwide commercial property and casualty insurance and reinsurance, property casualty reinsurance, as well as certain speciality lines.

A statement released by the new company yesterday said: "With approximately $1.5 billion of equity capital, the company will provide supplemental capacity that will aid the global insurance market place in providing critical insurance coverages for businesses around the world."

AIG contributed approximately $291 million to the new venture, while Chubb and GSCP each contributed approximately $250 million of equity capital, with the remaining amount contributed by outside investors.

AWAC intends to commence operations no later than December 3 - just ten days away - in order to meet the demand expected in the January renewal period.

The company said: "Michael I.D. Morrison, a seasoned industry executive, will serve as president and chief executive officer and director, and will lead a senior team of underwriters with unparalleled knowledge of the global insurance market place."

AIG chairman and CEO, Maurice (Hank) Greenberg will serve as chairman of the board and Chubb chairman and CEO Dean O' Hare will serve as deputy chairman of the board.

The insurance and reinsurance written by AWAC will be sold through qualified insurance brokers and reinsurance intermediaries and Lars Bergquist, executive vice president, Risk Specialists Company (Bermuda), serves as AWAC's broker contact.

AWAC is one of six major new insurance and reinsurance companies set up on the Island following the September 11 terrorist attacks on the US;

Other companies include Arch Re Ltd, who are backed by private equity firms Warburg Pincus and Hellman and Friedman. The company will write broad based multi-line insurance with $1 billion capitalisation and be headed by CEO Paul Ingrey.

Axis Speciality, who will write property, aviation, war and other lines has been set up by Insurance Broker Marsh and McLennan with target capitalisation of $1.6 billion. Axis CEO and president is John Charman and chairman is Bob Newhouse.

DaVinci Re, who will write property and casualty has been set up by Renaissance Re Holdings Ltd with $500 million initial backing from investors which include State Farm, the largest domestic US insurer. DaVinci Re's CEO is James Stannard.

Endurance Speciality Insurance Ltd. will write commercial property and casualty insurance and reinsurance and was set up by Aon Corporation and Zurich Financial Services and affiliated entities and others, with capitalisation of $1.2 billion, $200 million of which is from Aon Corp. Endurance's CEO is Kenneth LeStrange.

Montpelier Re, set up by White Mountains Capital, will write property and casualty insurance and is capitalised with $1 billion, $200 million of which is from White Mountains. Montpelier Re CEO is Tony Taylor and Chairman is Jack Bryne.

The total number of staff expected to be employed by these six new companies is approximately 100 people in the first year, a number that is expected to rise as business increases.

And a whopping $5.8 billion of capital has been raised to back the new ventures.