New Cap Reinsurance Corporation Ltd began in 1996 as an exuberant and exciting new start-up venture; but less than three years later, analysts say it has been reduced to an ailing organisation with an uncertain future.

The company was created in mid-1996 by high-profile banker Mr Iain Thompson, who set up the business (after quiting as head of Commonwealth Financial Services) with two heavy-hitting reinsurers, Mr Volker de Chelard and Mr Paul Williams.