Bermuda front-runners. (Bermuda Angle).

Of the dozen large companies formed in Bermuda after 9/11, four have emerged as front-runners. The 2001 market leaders are Arch, AWAC, AXIS and Endurance. Each was started with $1 billion or more and is pursuing a different market niche.

Of the four, AXIS Specialty keeps the lowest profile, but like his counterparts, president and CEO John Charman has had a busy year establishing an international infrastructure, while writing what will turn out to be close to a billion dollars of gross premiums.

AXIS Specialty was the largest of the start-ups formed in Bermuda in response to market dislocations in the wake of the events of Sept. 11, 2001. AXIS raised more than $1.6 billion through a private placement. Its founding investor was Trident II, a private equity fund managed by MMC Capital. Other lead investors included private equity funds managed by J. P. Morgan Partners, Thomas H. Lee Partners, the Blackstone Group and Credit Suisse First Boston.

AXIS started doing business in December 2001. A handful of underwriters was hired to manage a ferocious renewal period that lasted well into February 2002 and, in some cases, beyond. The balance of the year was spent hiring more than 40 employees and establishing a corporate infrastructure that positions AXIS as a global player. Highlights of the year included:

* March: AXIS Specialty U.S. Holdings agrees to buy Royal & SunAlliance Personal Insurance and Connecticut Specialty Insurance. When the deals close, these shell companies will be renamed Axis Specialty Reinsurance (ASR) and Axis Specialty Insurance (ASI), respectively. ASR will be licensed to write insurance and reinsurance in all 50 states, the District of Columbia and Puerto Rico. ASI will be licensed as a surplus lines carrier in 38 states.

* April: AXIS Specialty enters into a $400 million credit agreement with a syndicate of lenders, an unsecured 364-day revolving facility that allows the company to issue up to $375 million of letters of credit and borrow up to $50 million for general corporate purposes with any combination of use capped at $400 million.

* May: AXIS Specialty receives Irish Government approval to commence business as an insurer and reinsurer through its European headquarters in Dublin, Ireland. The company will write insurance through AXIS Specialty Europe and reinsurance through AXIS Re. These companies give AXIS the ability to write awide range of specialty lines throughout the European Union.

* September: Nine months' results show net income of $153.8 million, Gross premiums written are $778.7 million. Specialty lines and treaty reinsurance account for $483.9 million and $294.8 million, respectively. Net premiums earned for the nine months are $317.8 million. The combined ratio is 74.9. Shareholders' equity is $1.8 billion as of Sept. 30, 2002.

Also in September, Michael Butt was appointed chairman of AXIS, succeeding his legendary Mid-Ocean colleague Robert Newhouse Jr., who remains a member of senior management Maurice Keane, former group CEO of the Bank of Ireland and Edward Kelly, president and CEO of Mercantile Bankshares, join the AXIS board.

* October: AXIS Specialty completes the acquisition of Connecticut Specialty Insurance, which will be renamed AXIS Specialty Insurance. It is domiciled in Connecticut and is a surplus lines insurer throughout most of the United States. AXIS Specialty Insurance will specialize in large commercial property business with an initial emphasis on high excess and buffer layer excess programs. Primary placements will also be entertained as part of the underwriting profile.

* December: AXIS Specialty completes its acquisition of Royal & SunAlliance Personal Insurance. Renamed AXIS Reinsurance, domiciled in New York, the company will have capital in excess of $375 million and is rated A- by A.M. Best. AXIS Reinsurance will offer a complete range of traditional and specialty property and liability reinsurance products, including directors' and officers', medical malpractice, umbrella, casualty clash, workers' compensation, marine, property pro rata, and property per risk.

* January 2003: AXIS Capital Holdings is formed as a top-tier holding company for AXIS Specialty and its subsidiaries.

Roger Crombie can be reached at [e-mail].