rating of `A ' (Single-A-Plus) to Bermuda-based trade credit insurer, Exporters Insurance Company Ltd.

Exporters had $82.4 million in total assets September 30, $43.6 million of shareholders' equity, $18.8 million in unearned premiums and commissions, and $15.1 million in reserves for potential losses.

DCR has a positive outlook for the rating in light of the company's excellent financial track record since it began in 1990 and the infrastructure and procedures in place that should help continue this trend.

Positive factors supporting the rating include: Low 4:1 insured risk to capital after reinsurance that includes an insured portfolio that is well-diversified by several measures, a high quality investment portfolio and ample reinsurance capacity; experienced and risk averse management that would be expected to maintain the excellent quality and diversity of the insured portfolio and claims-paying resources; favourable ownership structure that facilitates Exporters' written business and reinsurance capacity; and, Exporters' astutely competitive market strategy.

Offsetting factors are: the company's relatively small paid-in capital size; substantial reliance on maintaining a high reinsurance capacity; modest operational resources compared with other credit insurers; and, insured exposure that is relatively long-term in nature compared to traditional credit insurance and is largely based in emerging markets.

Exporters' ownership structure promotes an active interest in the company's stable growth and security for policyholders.

Approximately 53 percent of the voting ownership is held by Enhance Financial Services Group, Inc., rated `AAA' (Triple-A) by DCR, which has a significant reinsurance relationship with Exporters.

The remaining voting stake is balanced by several major corporations that are active participants in the international trade markets. Exporters is considered a `group captive insurer,' whereby it issues policies only to preferred shareholders.

Preference shares are sold periodically to qualified corporate purchasers, entitling them to credit coverage of approximately 25 times the dollar amount of the investment.

At September 30, the sizable and growing preference shareholder base was prudently diversified by several measures such as size, industry (particularly the essentiality of insured revenue base) and geography.

Exporters makes extensive use of reinsurance to enable it to provide a competitive degree of insurance capacity for preferred shareholders while minimising its risk.

The company currently has relationships with eight prominent reinsurers to which it could cede up to 94 percent of a maximum $62-million policy.

At September 30, some $1.2 billion of the company's total exposure was ceded to this consortium, representing 86 percent of Exporters' total $1.4 billion of insurance in force.