Hiscox has announced that Robert Childs will head up its new Bermuda operations.

In a statement this morning, the company said that Childs is to be chief executive of Hiscox Bermuda and announced a rights issue aimed at raising £170m to finance the launch.

Hiscox said the Bermuda insurer would be capitalised at $500m in order to take advantage of favourable market conditions and was expected to particpate in the 2006 renewals season

Hiscox Bermuda will write a balanced business mix of reinsurance and retail business and is expected to generate $325m of premiums in 2006, of which $235m will be incremental to the group.

Robert Hiscox, chairman of Hiscox, said: "We have watched the growing market in Bermuda and for some time considered that we need to underwrite there to increase the spread, balance and distribution of both our global reinsurance and retail accounts.

"Bermuda is a fast growing reinsurance market, which now sees business not shown in London, and has pricing advantages and a favourable regulatory regime.

"The time is right for us to open there. Reinsurance prices will be strong following the spate of hurricanes this year."