A.M. Best has affirmed the "A'' (Excellent) rating of Bermuda-based Mutual Risk Management's IPC group of companies.

"The rating reflects the group's excellent profitability, liquidity and leverage, its conservative investment portfolio and strong capitalisation,'' a press release stated. "The rating also reflects the group's leadership position in the worldwide alternative risk transfer market through its rent-a-captive and programme business facilities.'' Through the IPC group Mutual Risk operates its insurance profit centre programme as insurers of the alternate risk funding market. The programme allows participating insureds to share in the profits and investment income from their own self-insurance. The group member companies are based in Bermuda, Barbados, Ireland, and the US.

A.M. Best noted IPC's positive rating factors were offset by the highly competitive workers compensation market in the US. The group reported a small underwriting loss in 1997.

"However, the underwriting loss was more than compensated for by significant investment income and realised and unrealised capital gains, which combined to produce a 16.8 percent increase in policyholders surplus,'' A.M. Best stated.

The group's return on equity has averaged 26.7 percent over the past five years.

"Despite the softening workers' compensation market, the group still writes a large volume of new preferred accounts, because IPC can unbundle its services to allow clients to maintain control over their insurance programmes,'' A.M.

Best stated.

The agency views the rating outlook for IPC as stable.

BONA SHIPHOLDING RECORDS OPERATING PROFIT OF $45.1M SHI Bona Shipholding records operating profit of $45.1m Bermuda-registered Bona Shipholding recorded an operating profit before depreciation and amortisation of $45.1 million for the first nine months this year, compared to US$65.3 million in 1997.

Operating profits after depreciation was $25.1 million, compared to $39.7 million in 1997.