Sphere Drake Insurance (Bermuda) Ltd.

The "very good'' rating announcement came as agency confirmed its "B '' rating for Sphere Drake Insurance Plc.

The two companies are wholly-owned subsidiaries of Sphere Drake Holdings Ltd., the Bermuda-registered and New York Stock Exchange-listed parent company.

The ratings reflect first and second quarter 1995 results, said Bloomberg business news service.

"We are pleased with the confirmation that Sphere Drake Insurance plc has maintained its B rating,'' said Sphere Drake Holdings president and CEO Mr.

Ian Dean.

"The rating of Sphere Drake Insurance (Bermuda) for the first time is also very satisfactory (and) we view it as an extremely positive step that A.M.

Best has granted the company a rating so early in its period of operation.'' Sphere Drake Holdings underwrites specialty lines of international property and casualty insurance through its operating subsidiaries in London and Bermuda.

Sphere Drake recently announced on September 27 it would take a $12.75 million charge in its third quarter to increase reserves on its marine protection and indemnity service. Since then, its share price has dropped from a high of $19 on September 19 to a low of $13.75 yesterday.

Chubb Atlantic Indemnity Ltd. (CAIL) announced yesterday Best had affirmed its "A '' rating.

CAIL is a wholly-owned subsidiary of the Chubb Corp. The designation is the highest Best assigns.

"We are very pleased that A.M. Best continues to recognise Chubb management's conservative operating strategy and Chubb's outstanding financial performance and very strong capitalisation,'' said CAIL president Mr. John Stites.

Earlier this week New Jersey-based insurer, Chubb Corp., reported third quarter profit rose 12.2 percent to $171.4 million, or $1.93 per share, from $152.7 million, or $1.71 per share, for the same quarter a year earlier.

The parent company's results included an 39 percent increase in realised investment gains after taxes to $13.2 million in 1995 from $9.5 million in 1994.

Correcting a wire story which incorrectly said Chubb's earnings were the result of a one-time investment gain, Chubb said yesterday: "Each business segment, property and casualty insurance, life insurance and real estate development, contributed to the better third quarter results.''