rating, yet hinted that some companies may need some improvement.

The worldwide service that rates insurance companies, has been establishing a new methodology to rate eight Bermuda catastrophe insurers. They want to produce ratings for every Bermuda insurer.

Representatives left Bermuda this week after communicating at a luncheon on the catastrophe companies, an almost unequivocal vote of confidence in the Bermuda market. In fact, associate at Standard & Poor's, Mr. Peter Wade, told The Royal Gazette that concerns about the Bermuda market had evaporated.

"We're not worried about Bermuda,'' he said. " We base that feeling of comfort on the quality of companies and their management. We came to that position after focussing in on claims paying ability and credit ratings.'' But Mr. Wade put forward one view that there was some differentiation in the financial strength of the Bermuda companies.

"I'm not saying that any of them are particularly weak, but some are stronger than others. Obviously, we would have to get in and look at each company before we start determining where they are, but even in our cursory meetings, it was evident that some companies are being run better than others.'' Standard & Poor's, which competes with rival American ratings company, A.M.

Best, had Mr. Wade joined in Bermuda by S&P managing director of insurance ratings services, Mr. Alan Levin. The firm has over the last year, established the pair with special responsibilities for the Bermuda market. Mr. Wade said that he has been on the Island every other month.

The luncheon this week was hosted by the Insurance Brokers Association of Bermuda and by some estimates, it failed to live up to the provocative expectations that stemmed from a Lloyd's List article earlier in the year which gave the impression that S&P were uncomfortable with the Bermuda market.

Mr. Wade, speaking from his New York office by telephone, made it clear that that is not true.

"We want to develop relationships with companies there. Bermuda has become an international player in the international insurance market. We have allocated some resources in the New York office with sole responsibility for the Bermuda market.

"We've already been rating Centre Re and OIL Insurance for several years now.

Some of the companies there in the catastrophe field have not been in existence for five years. We normally require a track record of five years to establish a pattern.'' As a result, the ratings firm has been devising a special methodology to rate eight catastrophe companies.

"One of the reasons we were in Bermuda this week was to show them the progress that we were making in establishing that methodology. They are underwriting a very volatile type of risk.

"We're looking at the possibility of rating some other companies on the Island. We want to rate every insurer on the Island. ''