THE African Methodist Episcopal church -- AME -- has confirmed it plans to channel all its worldwide insurance through its own Bermuda-based insurance company.

The company, AME Reinsurance Ltd, was incorporated in Bermuda last Thursday and will be managed by Marsh McLennan in Hamilton, international specialists in insurance company management.

Rev. Dr. Leonard Santucci, provisional secretary to the new company, said: "The AME church operates throughout the continental United States, parts of Canada, Bermuda and the Caribbean, England and central and southern Africa.

"Within 19 episcopal districts of the church we have assets in excess of $5 billion and that is what we will be working to insure and re-insure. Currently we are insured with separate carriers.'' Nalton Brangman, a church member and provisional vice chairman of the new company, added: "There are various portfolios of insurance that the church now carries.

"By moving them under the umbrella of the church's own insurance company we will be able to better manage not only the programme, but be able to exact savings for the church.

"Before, if a company was insuring part of the church's business, a specific percentage of that business was that company's profit.

"The key behind the philosophy of having our own insurance company was so that we would be able to financially empower the church through this to do more church ministry.'' AME Reinsurance has been structured and registered as a captive insurance company.

A captive is a wholly owned subsidiary of its parent company that insures part or all of the parent company's risks. Many large corporations and organisations have captive insurance companies. The main benefits to the parent companies include a saving on insurance costs, the ability to insure some risks that may be virtually uninsurable in the open market and the opportunity to manage and minimise risks within the parent or group.

Bermuda is one of the leading captive insurance centres in the world, with currently more than 1,500 international insurance companies registered on the Island. By incorporating a captive in an offshore financial centre there are additional tax savings for the company.

But as important are the expertise, standards of service and access to insurance markets that a mature centre such as Bermuda can offer and that may not be so easily accessed `onshore'.

Jill Husbands, senior vice president of business development at Marsh Management Services, said: "We are very honoured and excited to be appointed to work with the AME church. To begin with the captive will handle the church's property and casualty insurance.

"I believe it is better to start with one defined area and then, if financially feasible, we will broaden to other areas of the church's insurance and eventually it will be all-encompassing.'' As the company's managers Marsh are working on the insurance programme for AME.

AME church to use own insurance company All insurance will be channelled to the captive through a main US insurance company, but it has not yet been decided which one. The captive may in turn lay some insurance off to other reinsurance companies. AME Reinsurance will only cover risks of the AME church and will not take in business from any other organisation or company. Mr. Brangman said: "The church, through its original incorporation, was designed to be a not-for-profit organisation. The structure of this operation is wholly and solely for the African Methodist Episcopal church. One share, one shareholder -- the AME church. That is it.

"We seek to take this income to do that which the church has been called to do. When we are better able to meet that calling, then truly we as a church are doing that which would please God in the first place.''