Bermuda-based facility, COFRSURE, that will provide financial guarantee insurance.

Terra Nova Underwriting Agency Ltd., the new subsidiary of Terra Nova (Bermuda) holdings Ltd., has executed a definitive agreement with Scandinavian Reinsurance Co. Ltd. for this purpose.

Scandinavian Re is authorised by the US Coast Guard (USCG) as an issuer of the financial guarantee insurance. It will issue the insurance coverage to the USCG, which in turn will issue Certificates of Financial Responsibility (COFRS) to shipowners.

Terra Nova Underwriting will be open to brokers, and will provide marketing, underwriting and administration for the facility.

Scandinavian Re president Jens Juul said: "This is a business that complements our growth and revenue diversification strategies and the opportunity to collaborate with Terra Nova has been a clear advantage.'' President of Terra Nova (Bermuda) Insurance Co. Ltd., John J. Dwyer said: "Providing the administration and sales support for this facility as well as the opportunity to arrange the reinsurance for the venture with several units of the Terra Nova Group confirms the value of the Bermuda underwriting facility.'' Mr. Juul added: "We think that COFR-like requirements are likely to expand beyond the United States in the years ahead and this facility will be prepared to respond to any expansion of that nature.'' Terra Nova said COFRSURE's strategy will focus on superior service and a unique pricing structure that responds to the needs of the brokers who specialise in meeting the requirements of this unique marine regulatory requirement.