Insurance giant Ace is to stop running its own child care operation after calling in help from a neighbouring nursery instead.

A spokeswoman said Ace wants to hand over its day care facility to a professional and experienced child care business — but would not rule out that it had anything to do with cost-cutting in the current economic climate.

The child care service was set up over the road from Ace's Woodbourne Avenue headquarters to ease stress for parents trying to juggle work and family commitments.

From July, Ace Nursery and Preschool will merge with Woodrose Nursery School, with Woodrose managing the operation at Ace's existing day care facility.

Ace's nursery's eight full-time teachers will be offered employment in the consolidated business, the spokeswoman said last night.

She said in an e-mail: "Although Ace has provided a day care service to our employees for a number of years in Bermuda, we are an insurance company and have never really been in the business of child care. We are not going to continue in the child care business.

"We have arranged for our day care facility to be consolidated into an organisation whose business is child education and that has over 25 years of experience in the care of young children.

"We have done everything possible to ensure continuity of day care services, both during this transition and beyond, to preserve the existing high level of care while allowing access to a wider range of educational opportunities for the children. All children currently enrolled in the school will continue until graduation assuming negotiations can be concluded successfully.

"We have made extraordinary efforts to secure employment opportunities for the Ace teaching staff as part of the consolidated operation, if they choose to accept them.

"The details of the new school structure are still being negotiated. We will keep teachers and parents informed of our progress."

Asked whether the move had anything to do with saving money in the light of the global economic downturn, she refused to give a yes or no answer, but replied: "The move was a result of Ace's decision to hand over management of its day care facility to a professional child care business with many years of experience in the care and education of young children."

Ace established its child care facility for children aged three months to five years old in 1996, following a recommendation from Nancy Duperreault, wife of former chairman Brian Duperreault.

It is open weekdays from 8 a.m. to 5.30 p.m., with parents welcome to visit their children, and is said to currently look after 40 youngsters.