With primary companies eagerly awaiting the Jan. 1 renewalseason, one factor that might keep pricing down is the influx ofnew capital into the reinsurance market, according to ananalyst.

Bear Stearns property-casualty insurance analyst David Smallsaid recently in a note to investors that more than $7.5 billion incapital is expected to flow into the market in the aftermath ofHurricane Katrina.

Last week Chubb Corp., Warren, N.J., announced it was investinginto a new Bermuda entity that was expected to have an initialcapital base of $1.5 billion. Harbor Point, as the company will becalled, is the first new reinsurance entity established in theaftermath of Katrina.

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