Five of the top ten reinsurers who made the most money through underwriting in the world for 1999 are based in Bermuda.

And ten of the Island's companies are listed in the global top 100 reinsurers.

The figures and lists, published in London-based Reinsurance Magazine, have Bermuda's Renaissance Re in pole position for the lowest combined ratio out of all the reinsurance companies last year.

Renaissance Re has a combined ratio of 65.3 percent, followed by US reinsurer Dornico Re in second place with 72.9, and Royal Bank of Canada in third with 73.7.

Further down the scale is Tempest Re, listed in sixth place with 93.6, followed by XL Mid Ocean Re with 94.9. In ninth and tenth place respectively stand Scandinavian Re and Partner Re.

According to the magazine, which is highly ranked in the business community, reinsurance companies are relying far more on investments than on their underwriting skills to stay ahead of the game.

"Forget the importance of who wields the underwriting pen. A study of 1999's top 100 reinsurance companies clearly shows that it is the quality of a reinsurer's investment manager and the vagaries of the world's stock markets that decide the winners and the losers in reinsurance,'' wrote Janina Clark in this month's magazine.

Miss Clark, who is the magazine's editor, says that out of their top 100 reinsurance companies listed, the group as a whole made a net underwriting loss of 11 percent on their net written premiums in 1999.

She adds: "The world's reinsurers are therefore relying on substantial returns from their investments to stay in the black.'' Last year the companies in general had a good year on the stock market. The magazine states: If the 87 companies in our ranking were to reveal their net underwriting result a staggering 72 made a loss, but only 18 out of the 85 that provided figures recorded an overall pretax loss.

"Reinsurers might have succeeded in keeping red ink out of that all-important bottom line, but with just 13 of them achieving a combined ratio of under 100 percent it seems that many of them would disappear if the stock markets take a tumble.'' And the magazine added that the predictions are that results will get worse before they get better, with the effects of European storms Martin and Lothar still being felt as well as typhoon Bart and hurricanes Floyd and Lenny still coming in.

Island reinsurers lead the way The magazine notes that the top 25 companies in their ranking made underwriting losses and adds: "Perhaps that means the continuing consolidation is bad new and big is no longer beautiful.'' In the list of the overall top 20 reinsurance groups ranked by net written premium, the only Bermuda company to list is Partner Re which comes in 15th place. First was ranked Swiss Re, second Munich Re, and third Employers Re.

In the section of top 100 reinsurance companies, Bermuda companies ranked 23 -- Overseas Partners, 36 -- Partner Re, 37 -- XL Mid Ocean Re, 43 -- Commercial Risk Re, 50 -- ESG Re, 70 -- Renaissance Re, 79 -- Scandinavian Re, 85 -- Stockton Re, 87 -- Tempest Re, 99 -- La Salle Re.

In the overall rankings, Munich Re came in first, Swiss Re second, Allianz third, American Re fourth, General Re fifth, Cologne Re sixth, Hannover Re seventh, Gerling Global Re eighth, Generali ninth and Transatlantic Re tenth.