ability to Compagnie de Reassurance d'Ile de France (Corifrance), which Terra Nova (Bermuda) Holdings Ltd. bought last year.

"Considering the short time which has elapsed since the acquisition, the intergration of Corifrance into the group is going well and synergies are beginning to materialise,'' Duff & Phelps stated.

Duff & Phelps said Corifrance's rating was based on the company's strong management, conservative underwriting, favourable historical operating performance, clean investment portfolio and "most importantly'', the strength and support of Terra Nova. The agency stated Terra Nova has already demonstrated support by providng $16.9 million in capital to the company in 1997, and stop-loss reinsurance protection in 1998.