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SKANDIA AMERICA'S 'A' BEST'S RATING UNDER REVIEW

 SKANDIA AMERICA'S 'A' BEST'S RATING UNDER REVIEW
 OLDWICK, N.J., Nov. 10 /PRNewswire/ -- Effective immediately,


A.M. Best Company has placed the "A" (Excellent) Best's Rating of Skandia America Reinsurance Corporation and three affiliated companies under review with negative implications.
 This rating action follows a major reorganization announced Oct. 26, 1992, and the recent termination of talks between Skandia Group Insurance Company Ltd. and John Head & Partners regarding the purchase of Skandia America for approximately $550 million. Skandia America's former chairman and chief executive officer, James F. Dowd, and other former officers were part of the John Head group.
 Following the withdrawal of Skandia America's initial public offering on Sept. 29, 1992, Skandia America announced a major strategic reorganization, including downsizing net premium volume from approximately $450 million to $100 million and a reduction in staff. The reinsurer plans to exit property market segments and focus solely on writing casualty business.
 "Given the termination of talks between the reinsurer and John Head, the forthcoming downsizing and the change in senior management of Skandia America, we are concerned about the viability of the reinsurer's operational strategy going forward, since it competes in a relationship- sensitive business," said John H. Sndyer, senior vice president of Best's property/casualty division.
 The reinsurer's rating will be reevaluated in the next several weeks after reviewing the new management team's business plans and gauging the response of the reinsurance marketplace to the company's reorganization.
 -0- 11/10/92
 /CONTACT: Christina Stein of A.M. Best Company, 908-439-2200/ CO: Skandia America Reinsurance Corporation ST: IN: INS SU: RTG


GK -- NY102 -- 9456 11/10/92 16:51 EST
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Date:Nov 10, 1992
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