Both Richard Black and Michael Cascio, who facilitated the introduction of the group behind Stockton to the reinsurance world in 1994, are departing the company under mysterious circumstances.

Industry sources hinted at the possibility of a fall-out between the pair and the company, which would explain the sudden decisions to vacate their positions as directors and as vice presidents, just as the company seemed ready to take off.

Stockton Re, which operates out of Stockton House on Par-La-Ville Road, obtained an insurance licence in Bermuda September 1994. But behind the scenes work had been underway by Mr. Black and Mr. Cascio since the previous spring.

A tight-lipped Mr. Black, when contacted in the Stockton Re office yesterday and asked about future plans, would only say: "We do not have any plans at this time. I don't think either of us feel it is appropriate to comment any further than what is in that letter.'' The letter is a statement issued to industry partners last week by president, Thomas F. Dailey, which began by stating: "The purpose of this announcement is to inform you that Michael Cascio and Richard Black have decided to leave Stockton Re.

"I realise that this may come as a surprise to you. I wish to stress that their decision does not affect Stockton Re's commitment to the insurance business.'' Mr. Dailey, who issued this statement as he flew out of the island last Thursday, was expected to return here yesterday faced with the task of filling some significant shoes. He was not available for comment.

The company's annual report, expected within weeks, should provide details of a firm that is being erected in the reinsurance world at a dynamic pace. Those in the industry point to Messrs. Black and Cascio as key reasons for that success. They both had moved from top underwriting positions at finite risk reinsurer, Centre Re, to start up Stockton.

Mr. Dailey's statement points to an expected record performance over the last fiscal year with equally successful outcomes in underwriting and investment.

He said, "I am particularly pleased with the continued growth in size and stature of our insurance business and we are very grateful for the contribution that Michael and Richard have made to building that business.

Clearly, their talents will be missed by all of us.'' The statement continued: "We are in the process of implementing a transition plan. Effective immediately, Chris Nelson will take over as acting head of the underwriting function at Stockton Re. I will be lending whatever assistance I can in working out the details of the transition and in getting Chris established.

"I have confidence that the team at Stockton Re will be able to handle this challenge and keep us on track to continued growth and further success.'' Privately-held, Stockton Re, which claimed assets of more than $400 million at March 31, 1995, is the former Bermuda-based Commodities Trading Corp. Ltd., and is a wholly-owned subsidiary of Stockton Holdings Ltd.

The company added an insurance and reinsurance underwriting function to a group with an established 25-year global track record in private investment.

Stockton Re is now an insurer and reinsurer of specialty risks, including both traditional and finite products.

The largest stake holder in parent Stockton Holdings Ltd. is Orix Corp. (about 40 percent), the largest non-banking financial services company in Japan.

Goldman Sachs came aboard last spring taking a $20 million stake in the firm.

It was seen as a very positive development for the company and for Bermuda.

The business of Commodities Corp. Ltd. (CCL), the New Jersey asset management subsidiary of Stockton Holdings Ltd., was being taken over by Goldman Sachs Asset Management, the global investment management division of Goldman, Sachs & Co., with the deal set to close near August 1.

Goldman Sachs was to provide the investment services to Stockton that had previously been supplied by CCL, and Goldman Sachs was to take an equity position in Stockton Holdings.

Stockton, through SIGCo, is also the leading provider of commercial guaranties for Certificates of Financial Responsibility (COFR) under the US Coast Guard requirement for ships in US waters.

Stockton posted results of $33.8 million in 1995 and $55.8 million in 1994.