CreditWatch Implications on Le Mans Re to Pos by S&P.Business Editors PARIS--(BUSINESS WIRE)--Standard & Poor's Sept. 14, 2001-- Standard & Poor's today revised to positive from negative the CreditWatch implications on its single-'A'-minus long-term counterparty credit and financial strength ratings on France-based reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. Le Mans Re, a 51%-owned subsidiary of French mutual group Les Mutuelles du Mans Assurances IARD IARD Investment Adviser Registration Depository IARD Incendie, Accidents et Risques Divers (French: property and casualty insurance) IARD Immediate Action Rapid Deployment (police tactic) (MMA (Microcomputer Managers Association, Inc.) A membership organization with chapters throughout the U.S. that was devoted to educating personnel responsible for personal computers. It disbanded in 1996. Mma - A fast Mathematica-like system, in Allegro CL by R. Fateman, 1991. ). The single-'A'-minus financial strength and counterparty credit ratings on MMA's main operating company operating company A business that engages in transactions with outsiders. Les Mutuelles du Mans Assurances IARD remain on CreditWatch negative. The CreditWatch revision is based on the recent announcement by XL Re Ltd (AA/Stable/--), which owns the remaining 49% of Le Mans Re, that it has reached an agreement to increase its stake in the company to a 67% controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail , forecast to take effect on Jan. 1, 2002. Strategically, Le Mans Re provides XL Re Ltd. with a strong, continental-European platform and supports ultimate parent XL Capital Ltd's (A+/Stable/--) expansion efforts as a global reinsurer. It is expected that Le Mans Re's limited client and product overlap with XL Re Ltd. and affiliates, and experience in emerging markets, will provide the XL Re group with strong growth and cross-selling opportunities in life and nonlife operations in the continental-European and international reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. and financial sectors. Offsetting these positive aspects are Le Mans Re's limited track record as a standalone operator, and the slight uncertainty surrounding the integration and position of Le Mans Re within the XL group organizational structure. However, given that Standard & Poor's believes that a majority-owned Le Mans Re will be strategically important to XL Re Ltd., Le Mans Re's ratings could be raised two notches to 'A+' on completion of the transaction, and on explicit support from prospective 67% parent XL Re Ltd. |
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