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                                                                      Exhibit 99


                                                                      [ESG LOGO]


FOR IMMEDIATE RELEASE

                                        Contact:  ESG Re Limited
                                                  Margaret L. Webster
                                                  Chief Administrative Officer
                                                  353 1 675 0201 (Dublin)
                                                  e-mail:peggy.webster@esre.ie


HAMILTON, BERMUDA, SEPTEMBER 5, 2000 - ESG Re Limited (NASDAQ: ESREF) announced
the divestiture of VBB (Bermuda) Ltd., ESG's health care division. HMI Partners
LLC, an affiliate of John C Head III, Chairman and CEO of ESG, and other
individual investors have invested a total of $4 million dollars in the venture.
Comparable terms will be offered to non-related parties for a period of 30 days
from closing. ESG will retain non-voting convertible preference share interest
in the new company. There will be no further liability for ESG to contribute to
the capital of VBB after June 30, 2000.

Gerald Moller, formerly CEO of ESG's health care division, has been named
Chairman and CEO of VBB (Bermuda) Ltd. and has resigned from the Board of
Directors of ESG Re Limited in order to focus his time and attention to VBB.

ESG RE LIMITED PROVIDES MEDICAL, PERSONAL ACCIDENT, CREDIT LIFE AND DISABILITY
AND SPECIAL RISKS REINSURANCE TO INSURERS AND SELECTED REINSURERS ON A
WORLD-WIDE BASIS. THE COMPANY DISTINGUISHES ITSELF BY OFFERING "INTELLIGENT
REINSURANCE" PRODUCTS AND SERVICES THAT HELP ITS CEDING CLIENTS TO BETTER MANAGE
THEIR RISKS. THESE INCLUDE SOFTWARE SOLUTIONS TO PARTICULAR UNDERWRITING
PROBLEMS, ACTUARIAL SUPPORT, PRODUCT DESIGN, AND, IN THE FIELD OF MEDICAL
EXPENSE REINSURANCE, LOSS PREVENTION AND DISEASE MANAGEMENT.

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Uncertainties related to forward looking statements: Certain statements in this
Press Release constitute "forward looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors, which may
cause the actual results, performance or achievements of the company to be
materially


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different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include, among other
things, the following: The Company's lack of history as a reinsurer and its
increased scope of business: the company's dependence on key clients; the
volatility and unpredictability of the risks the company insures; the cyclical
nature of the reinsurance market; competition and the company's evaluation by
insurance rating agencies; changes in tax laws and regulations; foreign currency
fluctuation; and the adequacy of loss reserves. A further discussion of factors
that could affect the Company's results is included in reports filed by the
Company with the Securities and Exchange Commission and in the Company's
Prospectus dated December 12, 1997.