(excellent) rating from A.M. Best, with the ratings agency forecasting a stable outlook for the Bermuda insurer.

Best said the rating was based on an in-depth analysis and evaluation of Starr Excess' results for its first three years of operation through 1996 and discussions of early 1997 operations.

Best said: "This rating reflects the Bermuda-based company's worldwide position in the excess liability insurance market, conservative balance sheet, talented management team and strong capitalisation.'' Starr Excess offers general liability, directors & officers (D&O) liability and professional liability insurance to the world's major corporations, underwriting from the head office in Bermuda, and operates a service one in London.

Best said, "As a wholly owned subsidiary of SELIC, Holdings Ltd., the company is a leading worldwide provider of directors & officers, professional liability and general liability excess insurance.

"Two of the company's sponsors, American International Group and General Re Corp., provided 34 percent of the original capitalisation and continue to provide technical and marketing support.

"The company has a very strong capital base, consistently superior earnings, and more than 250 policyholders that operate in widely diverse industries, including many of the largest industrial enterprises in the world.'' Best also noted that the company maintains a high degree of liquidity and has a conservative investment portfolio.

Starr's senior vice president, Clint Greene, said, "This is a major milestone in the life of Starr Excess and should alleviate concerns that some brokers and risk managers had expressed in dealing with a young company. We are very proud of this achievement.'' But offsetting the positive factors, said Best, are possible fluctuations in earnings due to the low frequency and high severity risks the company underwrites.

"While loss reserving,'' they said, "for high attachment risks can be difficult, the company has instituted a number of measures to closely control its reserving and claims management techniques.

"Also, since Starr was formed in 1993, the company is not faced with loss reserves for the environmental, asbestos and other latent injury exposures that have emerged in the past 20 years.

"Although competitive pressures have increased in the worldwide excess liability market, where additional capacity is causing market pricing reductions, Starr Excess' revenues grew 8.8 percent in 1996, and the company was able to retain 80 percent of its clients while maintaining its pricing discipline. A.M. Best views the company's long term rating outlook as stable.'' The company issues policies with a minimum attachment point of $25 million and offers capacity of up to $25 million for professional, $50 million for D&O and $150 million for general liability.

Kimberly A. Holmes is to be promoted to vice president at Starr Excess, as of Thursday, having joined the team in 1996. Ms Holmes began her career at General Reinsurance in 1992 as part of the actuarial services department, but transferred in 1993 to the treaty underwriting department.

She was promoted to assistant secretary in 1994 and assistant vice president in 1996.

Prior to joining General Re, she spent several years in actuarial consulting, including at Milliman & Robertson in New York.