a $20 million loss as a result of the explosion at a Texaco oil refinery near Los Angeles on October 8.

Texaco carries a $10 million self-insured retention for property risks. Texaco then purchases an unknown amount of property coverage from Heddington.

Heddington retains $20 million of the risk and buys about $700 million of quota-share reinsurance, said Heddington's senior vice president Mr. John Turner.

The captive's reinsurance programme is placed by Willis Faber and Dumas in London and is structured in several layers with various leading reinsurers.

Mr. Turner said that claims in some newspapers that the total loss from the accident could be as high as $800 million were totally inaccurate.

"The general estimates of the loss that have appeared in the press have been greatly exaggerated,'' he said.

"The total claim is nowhere near the figures of $700 million and $800 million that some have been reporting.

"It's very unlikely that the gross loss will exceed $100 million, of which our share is $20 million.'' He added: "It's not a major disaster at all. It's a very nasty accident but it was confined to one area of the refinery.'' About 16 workers suffered minor injuries when the 100,000 barrel-per-day refinery, which is situated in Wilmington, California. There were no deaths.

For safety reasons, about 200 families living within a one-mile area to the west and south of the refinery were evacuated. Shelters were set up to accommodate them.