an article that it "has now emerged as an increasing threat to other insurance centres -- particularly London, which has seen Bermuda challenge its traditional role of providing insurance cover that the US market is unable or unwilling to provide.'' But the articles also calls the Independence issue "the biggest cloud on the horizon.'' It states: "Probably the biggest cloud on the horizon is the debate about whether the Island should become independent from the UK. A "yes'' vote in a referendum scheduled for August 15 would trigger fears of political instability, raising concerns that the favourable trading environment in which the Island's insurance industry has prospered may become more hostile.

"But opinion polls suggest that most of the Island's 60,000 population is against change.'' The article visits the Government House reception for the Bermuda Insurance Symposium, "the tiny Island's biggest ever insurance conference''.

Headlined "Insurers enjoy their place in the sun'', the story, published in Monday's paper, includes a Registrar of Companies graph detailing the rising market since 1981 by premiums written and capital and surplus.

The story is promoted on the front page masthead in the upper left corner with a headline that says "Bermuda: A tiny paradise flexes its muscles, page 15.'' The author, Ralph Atkins, writes: "A tax free regime and an undemanding regulatory environment have encouraged growth in the capital base of the island's insurance industry to close to $30bn, with much of the expansion in the past few years.

"In some areas -- such as insuring other insurance companies against natural disasters -- Bermuda claims a world market share in excess of 20 percent.'' The article states that a survey by the Reinsurance Association of America showed that Bermuda has overtaken the UK as the biggest foreign provider of reinsurance cover to US companies.

Finance Minister, the Hon. David Saul is quoted as saying that in the hotel lounges and clubhouses there is a "classic Lloyd's coffee house in the making''.

SUNNY STORY -- The Financial Times story on Bermuda.