NEW YORK--The flood of capital that has moved into Bermuda inrecent years is not responsible for creating or sustaining a softmarket, a representative of a Bermuda insurers and reinsurers tradegroup said here.

Bradley Kading, president and executive director of theAssociation of Bermuda Insurers & Reinsurers, aired that viewduring a joint luncheon of the Association of ProfessionalInsurance Women and the Insurance Brokers Association of the Stateof New York.

Responding to a question, he said, "If you look at Bermudacompanies you'll see record amounts of stock buybacks authorizedduring the current calendar year.

"In other words, the money they're making from profitableinsurance results is going back to shareholders. It's notcontributing to the downward spiral."

Mr. Kading's view got support from a rating agency reportpublished by New York-based Standard & Poor's on the same day,with S&P noting that a group of 23 Bermuda companies boughtback $2.7 billion of their shares--roughly 3.7 percent ofshareholder's equity as of Sept. 30.

S&P cited "prudent capital management" strategies as onefactor supporting its view that ratings will remain stable for thenext six months, at least--even as the market softens.

S&P also highlighting enhanced enterprise risk managementprocesses and disciplined underwriting as factors supported its"cautiously optimistic" view.

The report titled "Will The Good Times Last for BermudianRe/Insurers?" said the group's shareholder's equity had jumped to$72 billion as of Sept. 30 on the heels of record profits, and thatthe companies still have about $3.4 billion (4.7 percent ofshareholder's equity) under existing share-repurchaseauthorizations.

Mr. Kading of APIW reviewed statistics suggesting that Bermudareinsurers have a dominant share of the global market and hedescribed benefits of a Bermuda domicile--mentioning a supportivegovernment and the ability to collaborate with capital marketsparticipants there.

He also presented a list of issues that threaten "sustainabilityof the Bermuda edge," including issues related infrastructureconstraints, housing, transportation and educational issues.

Two executives from ABIR member companies went on to describecooperative efforts of Bermuda insurers and the government aimed ateducating Bermuda citizens about insurance.

The two executives--Allison Towlson, senior vice president andregional executive for ACE Bermuda Insurance, Ltd., and SherronWilliams, senior vice president of professional lines for XLInsurance Ltd.--both Bermudians, described their career paths andshared details of various scholarship, internship and mentoringprograms in place at their companies.

"Why are we doing this?" asked XL's Ms. Williams. "There are anumber of reasons, but one is to be a good corporate Bermudacitizen," she said, using a phrase the local government uses toidentify companies with initiatives to attract, recruit and trainBermudians.

Such companies are rewarded by the government with smoothimmigration processes for expatriate workers and relatedincentives, she said.

Although there have been recent media reports in Bermuda's RoyalGazette and several U.K. reinsurance publications suggesting thatwork permit time limits and delays have frustrated unnamedinsurance executives so much that they may pack up and leave theisland, Mr. Kading told NU that ABIR members are not amongthem.

"The government is committed to resolving work permit issues ina timely fashion," he said, adding that companies with certaintalent requirements are given exemptions to the six-yearlimits.

He confirmed that the government recently floated an idea to putthree year terms on permits and tie them to three-year trainingprograms for Bermudians who would replace expatriate workers whenpermits expire. "I think the way to think about that is that it'spart of job training--it's part of everybody's interest in havingapprenticeship[s] and in building the local talent pool."

"So I'm not sure that we'll ever see it in legislation. It'sreally just to crystallize the way we're all trying to developlocal talent."