Latin American Reinsurance Co. Ltd. (LARe) the latest Bermuda-based Class 3 reinsurer, began operating on Monday and executives were already this week on a marketing trip in Mexico City, attending FIDES, the 26th Hemispheric Insurance Conference.

They are using the conference, which winds up today, to make contact with a number of people in the Latin American market, as they seek to attract business for the underwriting year beginning January 1.

Latin American Re is a response to significant economic growth in Latin America and the lack of specialised reinsurers in the region. The company plans to write mainly property reinsurance for primary companies operating in the Latin American area. LARe was capitalised in Bermuda last week with approximately $100 million, of which Bermuda-based XL Global Re has contributed $75 million and Risk Capital Re (RCRe) added $25 million.

Chairman and CEO, Richard Meyer, formerly of Johnson & Higgins, said, "Through its significant economic reforms and democratisation, the Latin American region has established itself as one of the most promising new markets for the reinsurance industry worldwide.'' Chief underwriting officer, Keith Shroyer, formerly of American Reinsurance Co., said, "After working in this region for more than 20 years, we recognised that the time had come for a reinsurance company dedicated exclusively to the region's particular reinsurance needs.'' Vineet Kalucha, who was previously with Ernst & Young and the Arab Insurance Group, is chief financial officer and John Barger, previously at Bankers Trust, is chief counsel.

LARe will provide multi-line reinsurance to the Latin American market, emphasising short-tail, multi-peril property reinsurance and, to a limited extent, casualty, marine, aviation and other lines of reinsurance.

LARe will also seek to enter other reinsurance niches, which may include workers' compensation, directors & officers, financial and finite reinsurance contracts on both a treaty and facultative basis.

LARe intends to serve the growing reinsurance needs of the Latin American markets through the use of representative offices in Argentina, Brazil, Colombia and Mexico, although underwriting will be done here in Bermuda.

Duff & Phelps Credit Rating Co. had already assigned a preliminary claims paying ability rating of `A' (Single A) to LARe and was expected to assign a final rating after the consummation of the contract.

XL Global Re (the former XL Re) is a subsidiary of Bermuda-based EXEL Ltd. and recently underwent a name change to reflect EXEL's acquisition of property catastrophe reinsurer, Global Capital Re (GCR). LARe is operating out of GCR's old offices at Sophia House in Hamilton.

Through X.L. Insurance Co., Ltd., X.L. Europe Insurance and X.L. Global reinsurance Co., Ltd., EXEL Ltd. is a leading provider of general liability, D&O liability, employment practices and professional liability, excess property insurance and reinsurance coverages to industrial, commercial and professional service firms and other enterprises on a worldwide basis. Risk Capital Holdings, Inc., through its wholly owned subsidiary, Risk Capital Reinsurance Co., provides reinsurance and other forms of capital, either on a stand alone basis, or as part of integrated solutions for insurance companies with capital needs that cannot be met by reinsurance alone.