reinsurance market came yesterday with the confirmation by one of the world's largest reinsurers of plans for a direct presence on the Island.

The Swiss Reinsurance Co. (Swiss Re), the world's second largest reinsurance company, has been a part of the Bermuda market for many years through subsidiaries and affiliates, but will now open a branch office here. It confirms rumours that have been circulating in the insurance community. Swiss Re has 70 offices around the world.

In fact, although local executives would not comment yesterday, the word is that Swiss Re anticipates a substantial volume increase in written premiums through Bermuda, in addition to the captive business they are currently writing. The company is said to have identified lucrative new business opportunities.

A leading provider of traditional and alternative reinsurance solutions, Swiss Re has a market capitalisation of some $34 billion and had gross written premiums last year of $11.9 billion.

Swiss Re to open branch office in Bermuda The Swiss Re New Markets division of the company also has a presence here.

Swiss Re Bermuda is to be headquartered with a number of its subsidiaries and affiliates out of the Mintflower Place on Par-La-Ville Road.

Swiss Re owns 70 percent of Bermuda-based International Risk Management Group, set up here in 1988. It also owns 22.8 percent of PartnerRe Ltd., a leading Bermuda property catastrophe reinsurer, with authorisation for ownership of up to 30 percent. Swiss Re was a founding sponsor of PartnerRe.

Swiss Re top managers here include Dr. Scott Bradley, David Whiting, Peter Fallon and Thomas Coffey.

Swiss Re has branches here of subsidiaries such as Swiss-based European Reinsurance Co. of Zurich and Barbados-based European International Reinsurance Co.

Dr. Bradley said, "I think it is safe to say that Swiss Re will have more business written through Bermuda, but I couldn't say how much more.

"The Bermuda office has always been a point of contact for Swiss Re. People have come to us about business that is outside of the alternative risk business we would do here.

"The carriers that we actually work for within the Swiss Re Group would not handle some of this business and we have been the point of referral to our colleagues in Switzerland.

"But this literally means that we would be able to service that business here.'' Mr. Whiting added, "It is significant that Swiss Re would open a branch office here. Swiss Re writes a lot of reinsurance business for Bermuda captives. It does so from Switzerland, and will continue to do so. Those relationships won't be disturbed.

"But I would expect that some of the business may be facilitated more directly through the Bermuda office, either on a referral basis or in terms of underwriting.

"Why come here now? The Bermuda market is growing. If you look at the premium volume from the Island, it has been growing steadily in the last three years, as has the amount of business that Swiss Re has been involved in through Bermuda.

"We also see a competitive advantage from operating from Bermuda, because of regulatory and financial reasons. So to that extent there is a benefit to having additional business from Bermuda.'' Staffing is not expected to change in the short term, with some eight people in the city office, at present.

But it is no secret that increased business levels eventually require additional office space and additional employees.