A $2.25-million deal has been finalised allowing Mutual Risk Management Ltd.

to acquire CFM Insurance Managers Ltd. Both companies are based in Bermuda.

CFM president and CEO, Mr. Simon Scupham, has swapped his captive management company for 60,000 shares in Mutual Risk. Mutual Risk was trading yesterday above $39 a share.

Mr. Scupham, whose interests in the past have included nightclubs and restaurants, will stay on at CFM, which will maintain its separate identity.

Chairman and CEO of Mutual Risk, Mr. Robert Mulderig, said, "This is an exciting development for us since CFM Insurance Managers will add significantly to Mutual Risk's captive management operations.

"CFM's European clients will complement our existing business, which is focused on North America, and their marine expertise will add to Mutual Risk's experience in that market, which has grown significantly since the acquisition last year of Shoreline Mutual Management (Bermuda) Ltd.'' CFM provides captive management services to Bermuda-based insurance and reinsurance companies. The client portfolio includes association captives and single parent insurance companies covering the broad spectrum of captive insurance risks, with owners located from the US west coast to eastern Europe.

The firm has developed a particular niche in "marine'' captives and clients writing "life'' business.

Mr. Scupham said, "Mutual Risk has been a phenomenally successful company to date and is unquestionably a recognised leader in the "Alternative Market''.

Consequently, this is a perfect home for CFM. Their substantial resources will help facilitate the exceptional growth that we are continuing to experience.'' Mutual Risk's common shares are listed on both the Bermuda Stock Exchange and the New York Stock Exchange. The company provides risk management services to clients in the US, Canada and Europe seeking alternatives to traditional commercial insurances.

Mr. Scupham, a Coopers & Lybrand chartered accountant who took over the Bermuda operations of the Kemper Group in 1987, and in 1991 took over CFM. He has also been involved with the former Forty Thieves Club and Robin Hood Pub and Restaurant.

IT'S A DEAL -- Chairman and CEO of Mutual Risk Management Ltd. Mr. Robert Mulderig (left) and president and CEO of CFM Insurance Managers Ltd. Mr. Simon Scupham completed a $2.25-million deal this month which brought their captive management firms together.