train, restaurant and river cruise company, announced that it has bought hotels worth $37 million.

The deal includes the 81 room Miraflores Park Plaza Hotel in Lima, Peru and the 80 room Bora Bora Lagoon Resort in the Society Islands in the South Pacific.

At an average cost per room of $230,000 the company said it feels both properties have excellent earnings potential.

The Lima property is almost new and is the finest hotel in the city. The Bora Bora property opened in 1993 and has been managed by Orient-Express Hotels since April 1997.

It will require about $2.5 million in improvements. Orient-Express Hotels in partnership with Peruval, a Peruvian company, owns deluxe hotels in Cuzco and Machu Picchu, Peru and has a 60 year concession to operate PeruRail, the country's primary rail network.

The company said it plans that the Lima property will be added to this partnership. Nearly all tourists to Peru overnight in Lima en route to or from Cuzco and other tourist destinations because the international flights operate only through Lima.

INSURER GETS DOUBLE A-MINUS RATING BUC Insurer gets double A-minus rating Bermuda-based insurer U.K. Mutual Steam Ship Assurance Assoc. (Bermuda) Ltd. has been assigned a double A minus ratings by a top US ratings agency.

Standard & Poor's assigned its double `A' minus counterparty credit and insurer financial strength ratings to The United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Ltd. (The U.K. Club), a midsize insurer focusing exclusively on marine risks.

The ratings agency said the outlook for the company is stable and said the rating action reflects The U.K. Club's extremely strong capitalisation, very strong financial flexibility, and strong business position.

But it added these strengths are mitigated by a deteriorating operating performance, which has fallen to good from strong.

Furthermore, it added, although The U.K. Club is the largest protection and indemnity (P&I) club worldwide, it continues to face increasing competitive pressures, both from other P&I clubs and fixed-premium providers.