has close ties to Bermuda banks. Their representatives see Bermuda as better positioned to provide the kinds of services their clients require.

Detroit-based Comerica Bank serves banking requirements of those who seek to benefit from captive insurance and alternative risk management programmes by issuing letters of credit, providing trust and investment management services, deposit and international treasury services and financing insurance premiums.

Comerica is a $30 billion bank, the 25th largest in the US. They own the fifth largest bank in Illinois and Texas, and also own a bank in California and have operations in Florida.

They also have a senior man who worked for five years at the Bank of Bermuda, New York-born Mr. Jonathan Blum, vice president of Comerica's captive insurance group.

Mr. Blum, who has been visiting Bermuda since he was five-years-old, says Comerica is at RIMS because they are dedicated to the captive insurance business.

"Other American banks try to do business in Bermuda, but they do it on a geographic basis, or lump it in with the general insurance practice, so it tends to get lost.

"We travel to, and are active in, all the major jurisdictions, especially Bermuda. We focus only on captive insurance and alternative risk financing.

"The Bermuda relationship is an important one for us. We are working with captive management companies in Bermuda to help bring business to the Island.

That is what we are counting on for our success.'' Clients from the Midwest, Texas, Illinois, California and Michigan are assisted by the US bank by introductions to different managers and other professionals in Bermuda at banks and management firms.

Mr. Blum said: "We work hand in glove for US companies who feel that they are paying too much money for their insurance premiums. We show them how they can save 20 percent by setting up a captive. Most choose Bermuda, because it is close and it has a long established tradition in the industry. We have very good contacts there that can smooth the way to a successful programme.'' There are also other ways that Bermuda banks work with Comerica. There are certain restrictions on non-US banks in confirming letters of credit. The restrictions require that institutions issuing letters of credit have a percentage of the amount in capital.

Comerica helps the confirmation process for local banks by using its own assets. They work closely with Bermuda banks in confirming letters of credit for American beneficiaries.

In the last two years, Comerica has been involved in $350 million in letters of credit for Bermuda on a standby basis.

Mr. Blum pointed out: "Bermuda invented the captive business. It has a reputation for excellence in terms of its regulations and the ease of doing business.

"When you send a fax, you know they'll get it. When you want to meet with an accountant to do an audit, you know they'll be up to a high calibre. When you want to deal with a law firm, you know you're getting excellent and responsive legal advice.

"There are other jurisdictions that have a number of these things, but not the same combination. Then of course, there's always Bob Hope's remark that Bermuda has more golf courses than heaven.'' Comerica deals in Bahamas, Barbados, Luxembourg, Dublin Cayman Islands, Hawaii, Vermont and Colorado.

Mr. Blum remarked that some US banks are getting out of the captive business because of the capital risk ratio requirements -- the amount of capital required to support letter of credit. It can vary from 20 to 100 percent.

He said: "You need more capacity per LOC (letters of credit). We have lots of capacity off our balance sheet to do LOCs.'' Mr. Blum has learned to play the bagpipes and during his business trips to Bermuda, he tries to squeeze in time with the Bermuda Islands Pipe Band and the Bermuda Regiment during Beat the Retreat ceremonies.