Aon, Zurich, Sponsor New $1.2bn Bermuda Underwriter

by Amanda Banks, Tax-News.com, London

12 November 2001

Zurich Financial Services and the Aon Corporation, a world leader in risk management, insurance brokerage and reinsurance, have announced that they have joined forces to co-sponsor the start up of a new Bermuda-based insurance and reinsurance company vehicle entitled Endurance Speciality Insurance Ltd.

In a statement released by Aon, chairman and ceo Patrick G. Ryan said: 'Aon plans to invest $200 million and expects that a major financial services organization will be a significant participant in Endurance Specialty. I have asked Ken LeStrange to be the CEO of Endurance Specialty Insurance Ltd. since the focus of this new venture is to provide disciplined property and casualty underwriting capacity to the market. Ken has an extensive underwriting background and has held executive management positions in the insurance industry.'

Mr LeStrange added: 'While I will miss the opportunity to lead a great group of professionals at Combined Specialty Corporation, I look forward to starting a brand new venture that will be providing products to the insurance marketplace which are in great demand.'

The new company will provide underwriting capacity to commercial property and casualty insurance and reinsurance clients. Plans include capitalization of around $1.2 billion with investments from several parties.

In 2001, US-based insurance rating and information group, AM Best, rated Bermuda the number one location for captive insurance in 2000. According to Best's Captive directory 2001 Edition, Bermuda holds 31.5 per cent of the world's total captive market of 4,458 captives - the year 2000 saw the formation of 51 new captives to the jurisdiction making a total of 1,405.

Total asset size exceeds $100 billion and annual premium income exceeds $25 billion. Bermuda is the world's third largest insurance centre after London and New York.

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