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S&P Rates Commercial Risk Reinsurance and Sub 'AA-'

2 July 1999

S&P Rates Commercial Risk Reinsurance and Sub 'AA-'

    NEW YORK--Standard & Poor's--July 1, 1999-- Standard & Poor's today assigned its double-'A'-minus financial strength rating to Commercial Risk Reinsurance Co. Ltd and its subsidiary, Commercial Risk Re-Insurance Co.
    This new rating is based on explicit support in the form of unconditional guarantees from their ultimate parent, SCOR.
    Commercial Risk Reinsurance Co. Ltd., a Bermuda-based company, and its wholly owned subsidiary Commercial Risk Re-Insurance Co., a Vermont-domiciled insurance company, collectively referred to as Commercial Risk, commenced writing business in 1992. Commercial Risk, with GAAP equity of $235.2 million at Dec. 31, 1998, provides nontraditional and alternative risk transfer products with capped limits to insurers and corporations worldwide. Gross written premiums have significantly grown to $321 million in 1998, largely due to working layer workers' compensation treaties under which the shift to guaranteed cost structures from retro-rated covers has introduced volatility to insurers' results. Further expansion into general and automobile liability coverages have fostered product line diversification and top-line growth.
    Commercial Risk Reinsurance Co. Ltd.'s principal shareholders through June 29, 1999, were SCOR (double-'A-'minus financial strength rating), a French reinsurance company writing insurance and reinsurance products globally; SCOR U.S. Corp., a U.S. holding company that is ultimately owned by SCOR; and Western General Insurance Ltd., a Bermuda-domiciled insurance company. Effective June 30, 1999, SCOR acquired Western General Insurance Ltd.'s remaining shares and assumed 100% ultimate control of Commercial Risk, thereby strengthening its commitment to the alternative risk market.
    Standard & Poor's expects Commercial Risk's contribution to SCOR's top-line growth, currently approximately 13%, will continue to expand as the products and customized solutions that Commercial Risk developed particularly for the U.S. market is marketed to SCOR's broad client base.--CreditWire