Omnium Insurance and Reinsurance Company Ltd, the Bermuda-based captive of French oil and gas company TotalFinaElf S.A. has had its AA long-term counterparty credit and insurer financial strength rating affirmed by Standard & Poors.

"The ratings on Omnium continue to be significantly influenced by the ratings on its parent, upon whom Omnium is heavily reliant, particularly with respect to the maintenance of its business position and financial flexibility (defined as the capacity to source capital relative to capital requirements)," said S&P credit analyst Peter Grant.

The ratings are further based on stand-alone characteristics of an extremely strong risk-adjusted capital base, high-quality retrocession programme and very strong operating performance. Risk-adjusted capital adequacy is expected to remain at an extremely strong level, with Omnium's capital base increasing to approximately $330 million in 2003.

S&P said Omnium's combined ratio expected to remain below 60 percent and it is not expected to increase the proportion of its third-party business beyond its current level of about ten eprcent of net premiums written, "this being confined to business that might have an impact on the parent's commercial relationships".