they had been affected by Friday's bombing of the World Trade Center, in Manhattan.

Both companies are understood to have provided coverage for the building, which is owned by the New York and New Jersey Port Authority, according to sources in the industry.

But neither company was yesterday prepared to discuss the matter. Mr. Colin James, whose firm Atlantic Security is the Port Authority's Bermuda broker, would not reveal what coverage had been placed locally or which firms had exposure.

"I can confirm that we are the Bermuda broker for the Port Authority,'' said Mr. James, who was in a building opposite the World Trade Center when the blast happened (see Page 1).

"Unfortunately, I'm not in a position to say anything about who has the risk and at what limits. At this stage, it's far too early to say what the impact of this will be and how it will be settled.

"Not much is known yet, including who was responsible for the bomb and how and why it was placed there.'' Both ACE and XL provide excess liability coverage, which is basically "umbrella'' coverage of risks that policies with other insurers do not cover.

XL covers risks up to the region of $100 million, while ACE insures up to a limit of $200 million.