Robert Newhouse, who played a prominent role in the transformation of the Bermuda insurance market in the 1980s, has died after a brief illness.

Mr Newhouse spent the bulk of his career with insurance brokers Marsh & McLennan Cos.

He was one a group of MMC brokers, whose idea it was to form Ace (now Chubb) in 1985 and Excel (now XL Catlin) in 1986. That group included Robert Clements, who passed away in 2010.

Mr Newhouse’s obituary in the New York Times described him as “one of the architects of the Bermuda insurance industry and instrumental in creating and managing such companies as Ace, Excel, Axis, Mid Ocean and numerous others”. He went on to serve on the boards of several of the companies he helped to create.

The obituary added: “He passed away peacefully with his family around him and his wife’s picture in his hands”.

Mr Newhouse graduated from the Hill School and attended Princeton University. He served as an officer in the US Navy during the Second World War.

Having started out in the insurance industry in 1954, he spent 36 years with MMC, serving as a senior executive for Guy Carpenter & Co and retiring as vice-chairman of the parent company, MMC.

Dan Glaser, chief executive officer of MMC, said: “It was with great sadness that we learnt of the recent passing of Robert Newhouse, who retired as vice-chairman of MMC in 1990.

“During his 36-year career at MMC, Bob was a transformative leader in our company’s history, an iconic executive in our industry and a true gentleman.

“On behalf of all of our colleagues at MMC, I extend our heartfelt condolences to Bob’s family, and celebrate his life and many contributions.”

Mr Newhouse was also an active consultant to Stone Point Capital, an MMC spin-off company specialising in private-equity investments, until his death.

The formation of Ace and Excel was a response to the US excess liability insurance crisis of the 1980s. According to Held Captive: A History of International Insurance in Bermuda by Cathy Duffy, Mr Newhouse was a highly skilled broker who played a key role in the design of Ace. It was also his idea to add directors’ and officers’ insurance to the concept, in order to expand the number of customers.

Evan Greenberg, chairman and CEO of Chubb, said: “Chubb mourns the loss of Robert ‘Bob’ Newhouse Jr, one of the founding fathers and early directors of Ace Ltd, Chubb’s legacy company.

“We pay tribute to Bob’s visionary leadership as an architect of the Bermuda insurance industry. On behalf of his friends and colleagues at Chubb, we extend our heartfelt sympathies to Bob’s family.”

And Mike McGavick, CEO of XL Catlin, said: “We are saddened by the passing of insurance industry visionary and veteran Bob Newhouse.

“Without Bob and industry icon the late Robert Clements, XL Catlin would not exist today.

“Bob Newhouse was not only instrumental in the formation of XL and other companies within the industry, he was also transformer of the Bermuda market through his innovative leadership and insightful advice on company boards well after his retirement.

“We are for ever grateful to Bob for his invaluable contributions and extend our condolences to his sons Robert III, Stephan and Paul and the entire family.”

Mr Newhouse’s wife of 69 years, Patricia, died in 2014. He is survived by his three sons and their wives, Robert Newhouse III and Laurie, Stephan Newhouse and Judy and Paul Newhouse and Diane as well as six grandchildren and seven great-grandchildren.