the A (Excellent) rating of Bermuda-based Western General Insurance Ltd.

A.M. Best's rating reflects the company's consistently favourable reported annual operating results and underwriting profits.

In addition, Western General has successfully evolved from its original role as a single-parent associated company to a third-party insurer and reinsurer with a major presence in the Bermuda and international insurance communities.

Although the company still writes the insurance risks of associated entities, its major sources of premium income and underwriting profits for 1998, are its investment in Catlin Underwriting Agency and its Lloyd's syndicates.

Western General's favourable operating results and underwriting profits are derived from the combination of its portfolio of associated and assumed risks.

Policyholders' surplus has increased 134 percent over the past five years, and return on capital and surplus has averaged 22 percent over the same period.

The company traditionally has written a limited number of profitable, long-term, high-layer worldwide property covers for major international clients.

These positive rating factors are offset by the worldwide overcapacity and soft pricing in property insurance and reinsurance.

However, Western General's presence in London, through its Catlin Westgen Ltd.

Lloyd's syndicates and agency gives it diversity in its underwriting portfolio.

In 1998, Catlin's results were fully integrated into Westgen's operating results and profits for the first time, due to Lloyd's three-year accounting rules.

If Catlin's past profitable operating trends continue, Western General's corporate results will begin to reap benefits from its diversification strategy as its share of Catlin's capacity increases.