Insurance Co., Ltd. (ACE), XL Insurance Co. Ltd. (XL) and Overseas Partners Reinsurance Ltd. (OP Re).

The new entity, Airline Risk Consortium, is providing catastrophe insurance cover for the airline industry, covering aviation, D&O, property and other related or associated exposures in a single policy form.

The consortium has already received its first submission from global broker, Aon Ltd., on behalf of a North American client.

ACE and XL will provide 40 percent each of the capacity, while OP Re will cover the final 20 percent.

ACE's existing Aviation Underwriting Operations, supported by the company's D&O and property divisions, will provide underwriting and management services.

ACE Insurance president Dominic Frederico said, "This consortium, the first of its kind in Bermuda, demonstrates ACE's commitment to respond to a perceived need and to provide new and innovative products.

"It also shows that where there is a broader need for catastrophe protection, the Island has the ability to harness its collective strengths to provide Bermuda-based solutions.'' Senior vice president and head of ACE aviation underwriting Gary Cooke said the consortium would provide up to $250 million in aggregate limits for each airline on either an annual basis or on a longer term basis.

Sub limits will apply to certain of the coverages and while minimum attachment points will apply, these will relate to the individual operations of airlines to be covered.

XL Insurance president and chief operating officer Robert Cooney said, "The facility represents a continuation of our excellent working relationship with ACE. With the softness of rates in our traditional lines, Bermuda insurers need to introduce thoughtful products such as these that bring real value to the client.'' President and CEO of Op Re and its parent Overseas Partners Ltd. Bruce Barone conceded: "This is not our customary line of business; however, because of the unique nature of this product and the quality of the other participants, we are pleased to provide capital support to the venture and further support the Bermuda insurance market. The airlines should be pleased with the product and security that stands behind it.'' HOPEFUL -- Gary Cooke AIRLINES FLY