Allied World Assurance Company has became the latest member of the Bermuda insurance market to establish a Swiss connection.

The company announced late yesterday afternoon that it will open a branch office in Zug, Switzerland that offers reinsurance products throughout Europe and beyond.

One leading member of staff — Marie-Laure Queneuder, vice-president, international treaty reinsurance — will move from Bermuda to Switzerland to oversee the new operation.

A statement from Allied said Ms Queneuder would work closely with Clare Himmer, senior vice-president, international treaty reinsurance, who will remain in Bermuda.

Allied's announcement comes after Ace Ltd., whose principal executive offices are in Bermuda, moved its holding company from the Cayman Islands to Switzerland in July, citing regulatory and reputational reasons.

Last month, reinsurer Flagstone merged its Bermuda underwriting platform into its Swiss unit, but said the move would not affect its operations on the island. Flagstone added that it expected to boost staff numbers in Bermuda in the future.

Allied's new office, at Lindenstrasse 4, 6340 Zug/Baar, will officially open on October 1, 2008.

John Redmond, president of Allied World Europe said: "As part of our constant efforts to promote growth and accessibility to our clients, we are proud to announce a new Swiss office. Switzerland is an established, mature reinsurance hub and a central location to service the rest of the continent. We look forward to this next step in building out Allied's European operations."

Ms Queneuder, who will be responsible for developing and managing Allied World's Swiss reinsurance operations, said: "We are excited to have a physical presence in Switzerland. In addition to the build out of our US reinsurance company this year, our new Swiss office adds to the expansion of Allied World's reinsurance operations."

Allied said its new office's operations will focus on providing a range of reinsurance products including property catastrophe, property risk, motor, general liability, employers' liability, professional lines, and miscellaneous lines of business.

Allied World's is an insurer and reinsurer with its corporate headquarters in Bermuda and offices in Atlanta, Boston, Chicago, Dublin, London, New York and San Francisco.