Brian Duperreault, president of ACE Insurance Ltd., has said only eight temporary jobs -- not up to 30 as reported in yesterday's Royal Gazette -- will be lost as part of a cost-cutting exercise.

Insurance giants ACE are shedding up to 30 temporary jobs as part of a cost-cutting exercise to save hundreds of thousands of dollars.

The move comes weeks after the firm was forced to pay out $100 million in losses associated with breast implant claims.

The figures were revealed in the company's last quarterly report and share prices were damaged after the announcement.

Now between 20 and 30 Bermuda-based temporary workers -- including contracted staff, consultants and secretaries -- are being told they are no longer required.

A spokeswoman for ACE would not comment on the cuts last night.

Asked if the firm could guarantee there would be no full-time redundancies, she said: "We have no comment to make.'' It is understood the firm opted to release all its temporary staff as the firm braces itself for a worldwide recession.

ACE UK cut 60 jobs in London in August, as part of a major restructuring programme.

Weeks later, it emerged that a London unit of ACE faced a massive costs bill as the insurers of SwissAir flight MD-11 which crashed into the sea off Nova Scotia, killing all 215 passengers and 14 crew.

The aircraft's hull alone was insured for $126.5 million.

But it was unclear last night exactly why ACE's Bermuda operation had joined other parts of the organisation to begin cost-cutting.

The firm, which provides insurance and reinsurance for a wide range of international clients, has subsidiaries in Bermuda, the US, Ireland and the UK at Lloyd's.

Interim reports in June showed the company held $8 billion in assets and $3.5 billion in shareholders' equity.

ACE also has enough money to have forked out for Bermuda's Cup Match cricket development programmes.

The firm announced this year that it would sponsor youth schemes for Somerset and St. George's.

The group has also committed even more cash to become the main sponsors of a new Senior PGA Tour golf tournament in Florida.

The ACE Classic, starting in February, will boast a prize purse of $1.2 million.

Shadow Labour Minister Alex Scott questioned the temporary job cuts last night, appealing for the firm to provide more details.

He said: "From a labour point of view, I always regret it when there is anyone displaced in the workplace.

"But even as I say that, with no more background information, I would have to say that just because a company is successful it doesn't mean it can carry staff who, from a production point of view, may no longer be required.

"I don't know enough about it to make definitive statements. But there must have been a judgment made in their operation that the functions carried out by the temporary staff were not warranted for them to become members of the permanent staff.

"Yes, the company is a large company. Yes, it has been shouldering its responsibilities in the community.

"And because it is obviously a well-run organisation, it would probably be very efficiency conscious and cost-conscious.

"They didn't become a successful firm by making bad judgment calls. But we are always sympathetic to the loss of jobs and ideally, it would be good if more details were made public.''