Bermuda-registered White Mountains Insurance Group has been assigned a `BBB' long-term rating along with its wholly owned subsidiary, Fund American Companies, Inc.'s (Fund American) debt securities shelf registration.

In addition, Fitch assigned an `A' insurer financial strength rating to White Mountains' two main insurance operating entities, OneBeacon Insurance Group's inter-company pool and Folksamerica Reinsurance Company. The Rating Outlook is stable.

Fitch said the ratings reflected White Mountain's focused underwriting strategy, improved profitability in 2002, reasonable financial leverage, strong management team and high quality investment portfolio, offset by the company's historical poor operating performance, including losses in non-core operations.