Insurance Co., of its US arm ACE USA has created an alliance with Blackthorn Reinsurance Services, Inc. to underwrite reinsurance business for special risk personal accident coverages.

Blackthorn will market and underwrite select reinsurance placements for Westchester Fire Insurance Co., while Westchester Fire will provide administrative support services for the new venture.

ACE said that Blackthorn principal executives, Bob Carey and Connie Lehane, had an impressive track record in the industry and were excited at undertaking the initiative with ACE USA.

They agreed that the ACE group's financial strength and the ACE USA commitment to the industry would enable the newly formed unit to provide a stable market for the clients.

ACE USA executive vice president and head of the specialty division, John Murad, said the partnership allowed ACE USA immediate entry into the market.

He said, "The principals of Blackthorn have clearly demonstrated their ability to manage this business. We look forward to a long term relationship with these successful players.'' Rated "A'' (Excellent) by A.M. Best Co., Westchester Fire was founded in 1837 and was part of the Westchester Specialty Group, acquired by ACE in January.

FAEROVIK APPOINTED AS DIRECTOR APP Faerovik appointed as director Bermuda-based ACE Ltd.'s subsidiary in London has appointed Tom Faerovik as director overseeing the company's business development in Northern Europe.

Mr. Faerovik will report directly the ACE London chief executive officer John Charman. Mr. Faerovik is a Norwegian with 17 years of experience in the insurance industry.

"We have identified Northern Europe as an area in which we intend to expand our existing underwriting activities as part of our ongoing business development,'' Mr. Charman stated in a press release.

Mr. Faerovik previously worked for Marsh & McLennan in Denmark where he was general manager from 1995.

AGENCY AFFIRMS INTERCARGO'S RATING BUC Agency affirms Intercargo's rating A.M. Best has affirmed its "A minus'' (Excellent) rating for Intercargo Insurance Co. following this week's announcement that Bermuda-based Exel Ltd.

had agreed to purchase the company for $88 million.

"The proposed merger would allow Intercargo to strengthen its marine insurance distribution strategy internationally by affiliating with Exel's international insurance brokerage operations,'' the ratings agency stated.

"Further, Intercargo's competitive position for larger international clients will be enhanced by its affiliation with Exel's worldwide insurance and reinsurance operations.''