Leading specialist underwriter Canopius Group has announced the launch a new operation in Bermuda.

The Hamilton-based operation will comprise Canopius Underwriting Bermuda, which will write business on behalf of Lloyd's of London Syndicate 4444, and Canopius Bermuda, a Class 3 reinsurance company with initial capital of $250 million.

Susan Patschak, formerly chief operating officer of Endurance Speciality Insurance, a unit of Endurance Specialty Holdings, will be chief executive of both operations, subject to immigration approval, Canopius said in a statement.

Working for Syndicate 4444, which has a current gross premium capacity is in excess of $1 billion, Canopius Underwriting Bermuda will feature business lines such as excess casualty, medical malpractice, property catastrophe, workers' compensation catastrophe, and terrorism.

The agency also provides further diversification of Syndicate 4444's portfolio by accessing new distribution channels and additional classes of business.

Canopius Bermuda, meanwhile, boasts an initial capital outlay of $250 million, which will be provided from existing group resources and new capital of $100m made up of equity from existing shareholders and debt.

The increased capital will strengthen the group's balance sheet, increase net assets and enable development of the Bermudian operation, while Canopius Bermuda will provide capital support to the group's underwriting operations at Lloyd's.

Michael Watson, chairman of Canopius said: "The prospect of launching our new platform in Bermuda is very exciting. It gives us access to new markets and will further diversify the lines of business that we underwrite.

"Canopius Bermuda will build its own franchise, at a gradual pace, reflecting current market conditions.

"Strict underwriting discipline is paramount at Canopius. Jim Giordano, Group Chief Underwriting Officer, will ensure that our underwriting philosophy in Bermuda mirrors the extremely high standards practiced by our team at Syndicate 4444.

"I am delighted that we have secured the services of Susan Patschak, who will lead our Bermuda platform, and who subscribes to our views of cautious expansion at this stage in the cycle.

"Canopius remains committed to London and the Lloyd's market. By establishing Canopius Bermuda as a coverholder of Syndicate 4444, our new clients will benefit from the excellent financial strength afforded by Lloyd's. We look forward with confidence to this next exciting phase in Canopius' development."