S&P Rates Omnium Insurance `AA'; Outlook Stable.

Business Editors

LONDON--(BUSINESS WIRE)--Standard & Poor's

Nov. 27, 2001-- Standard & Poor's today assigned its double-'A' counterparty credit and insurer financial strength ratings to Omnium Insurance and Reinsurance Co. Ltd. (Omnium), the wholly owned, Bermuda-based reinsurance affiliate of the French oil and gas company, TotalFinaElf S.A. (TotalFinaElf; AA/Stable/A-1+). The outlook is stable.

The ratings on Omnium are significantly influenced by the ratings on its parent, TotalFinaElf. This is due to Omnium's worldwide function as an integral part of the TotalFinaElf group's overall risk management strategy. The ratings on Omnium are further based on stand-alone characteristics, including an extremely strong risk-adjusted capital base and high-quality retrocession program, and very strong operating performance, but offset by a group-dependent business position.

Major rating factors:

-- Strong parent. As the reinsurance affiliate of TotalFinaElf, Omnium benefits from the support of a financially strong parent. Following TotalFina S.A.'s acquisition of Elf Aquitaine (Elf; AA/Stable/A-1+) in 2000, the majority of Elf's insurance and reinsurance activities has been integrated into Omnium. More than 97% of Omnium's business is derived from its parent.

-- Extremely strong capitalization. Omnium has capital in excess of $282 million, producing a risk-adjusted capital adequacy ratio of more than 500%, based on Standard & Poor's model.

-- High-quality retrocession. Omnium has a thorough and comprehensive program in place, with high-quality retrocessionaires. The company's underwriting capacity has a strong, although necessary, dependence on this program, as shown by the recent major losses resulting from the explosion at the group's AZF subsidiary in Toulouse.

-- Very strong operating performance. Omnium has a consistent record of very strong profitability, with an average combined ratio of 58% over the past five years, mainly due to low loss levels. This is expected to deteriorate temporarily to around 71% in 2001, principally as a result of the Toulouse losses.

-- Good business position. The business position is good, but almost exclusively limited to reinsuring risks emanating from the TotalFinaElf group. OUTLOOK: STABLE

Risk-adjusted capital adequacy is expected to remain in excess of 450%. The quality of the retrocession program is expected to remain very strong. Omnium is expected to maintain its very strong operating performance, with the combined ratio in 2002 returning to around the historic average of 58%, in the absence of further major claims.

Gross premiums written are expected to increase by more than 70% in 2001 to about $166 million, mainly due to the integration of the former Elf business. Omnium's volume of third-party business written is expected not to exceed 10% of net premiums written and to be confined to business that might have an impact on the parent's commercial relationships.