MARSH FORMS NEW COMPANY

Marsh & McLennan Cos. Inc. is forming a new firm, to be called Axis Specialty Ltd., to deal with industry cutbacks in coverage that have occurred since the Sept. 11 attacks. Bermuda-based Axis is being created to capitalize on the shortage of services as carriers are hit hard by losses resulting from the terrorist attacks, Marsh stated. It is expected to have about $1 billion in capital and will start underwriting in the fourth quarter. Trident II LP, a fund managed by MMC Capital, will be the lead investor. John Charman, the former president of ACE International, will be chief executive of the new insurance and reinsurance company, which will be created by Marsh’s MMC Capital Inc. unit. Robert Newhouse Jr., who was the chairman at Mid Ocean Ltd. and a vice chairman at MMC prior to that, will assume the position of chairman.