and counterparty credit ratings to PartnerRe US, the new subsidiary of Bermuda-based PartnerRe Ltd.

PartnerRe acquired the US subsidiary through the purchase last year of Paris-based SAFR. With the acquisition of SAFR Partner Re expanded its client base to about 1,000 from 200 worldwide. The company also gained an important foothold in the US.

"PartnerRe has heightened its strategic focus on the US market by strengthening its US operations,'' S&P stated in a release. "The company instituted several measures including the legal entity name change to PartnerRe US from SAFR US, capital contribution of $100 million, and added professional resources -- all demonstrating management's commitment. Standard & Poor's believes that PartnerRe US is strategically important to the group.

The company's growth in business and operating profitability is likely to increase its importance to the group over the next few years.'' S&P also affirmed its double "A'' rating of Partner Reinsurance Co. Ltd. and single "A'' preferred stock rating and single "A'' counterparty credit rating on PartnerRe Ltd. The ratings are based on PartnerRe positioning itself to "meet the global demands of its clients and to cultivate new relationship'' S&P stated. Operating results for the consolidated group have "consistently remained strong'' as seen by a return on revenue averaging about 68 percent over the last four years.

"Partner Reinsurance Co. Ltd. has historically employed conservative parameters for managing total risk exposures,'' S&P stated. "The company can survive two complete zonal losses and still be operational to write new property casualty business as the market hardens. this is a very severe benchmark given company attachment points and the implied severity of the industry loss.'' S&P forecasts net premium growth in the range of 35 to 45 percent when SAFR is included in the 1998 results for a full financial year. Growth is then expected to return to the 10 percent range with strong contributions from the US business offsetting general market declines.

"S&P expects operating performance to decline from historical highs,'' the rating agency stated. "Return on revenue in the 15-20 percent area and combined ratios for non-property catastrophe business in the 101-104 rage are anticipated.''