led to the departure of a substantial number of staff.

Some 60 staff, representing 20% of ACE UK's workforce, have lost their jobs, including four named underwriters, Insurance Day reported.

The startling development comes only two months after John Charman was appointed chief executive of ACE UK, following ACE's purchase of Tarquin, the UK-based holding company which owned Charman Underwriting Agencies.

He said the changes were the acceleration of a process identified by ACE to create a single capital base by 2000, and in response to extreme trading conditions. Mr. Charman said, "Businesses should be consistently evolving and changing. What we are doing is protecting the business...to make sure we are lean, mean and as strong as we can be to cope with the very competitive international marketplace.

"We are the first of the major Lloyd's groups to have done so, and to properly react to the cost base we are carrying.'' He stressed the review had looked at the whole of ACE UK's operations, and that the company would do everything possible to help relocate those people affected into new jobs.

The underwriters who have left are Jonathan Barnes (syndicate 47), Clive Washbourn (syndicate 375), Ray Hunter (syndicate 122) and Robin Todd (syndicate 483).

ACE declined to comment on what the job losses will cost or, on what are expected to be substantial long-term cost savings.

The combination of Tarquin and ACE UK brought together some 280 staff, of which around 30 were from Charman Underwriting Agencies.