$100 million ten-year senior notes in the US.

The notes, guaranteed by Terra Nova (Bermuda) Holdings Ltd., the ultimate holding company of the Terra Nova group, carry a coupon value of 10.75 percent and mature in 2005.

The securities are listed on the New York Stock Exchange.

The lion's share of the issue repay all Terra Nova Insurance (UK) Holdings' bank debt while $10 million will be contributed to its UK operating subsidiary, Terra Nova Insurance Company Ltd. lifting the latter's net asset value to $180 million.

"I am pleased that our group has successfully gained recognition by the public securities markets. In addition to the benefits to our financial structure, the additional capital committed to Terra Nova in the UK underlines our prospects for Terra Nova as an important company in the London international insurance reinsurance market,'' said Terra Nova (Bermuda) chairman Mr. William Bailey.

"The combined capital and surplus of the Terra Nova group's two operating companies now exceeds $250 million,'' he said.