and reaffirmed the company's AA (Excellent) claims-paying ability rating. The wholly-owned subsidiary of PartnerRe Ltd. was placed on credit watch on February 27 when the Bermuda-based reinsurer announced it would purchase Society, Anonyme Francaise de Reassurances (SAFR). The AA rating was reaffirmed last month.

Standard & Poor's AA-minus claims-paying ability rating on SAFR remains on credit watch. A press release stated that S&P expects SAFR's rating will be raised to AA pending completion of the sale.

PartnerRe expects to complete the $950 million purchase in cash and shares from Zurich-based Swiss Reinsurance Co. by mid-year.

SAFR focuses mostly on short-tail proportional business mainly in France, the rest of Europe, and Asia. PartnerRe focuses on catastrophe reinsurance.

"Going forward, Standard & Poor's expects SAFR to offer larger lines on many of its contracts and to retain a higher proportion of gross writings for its own account,'' the release stated. "While these trends may cause SAFR's solvency ratio to decline, it is anticipated that financial strength will remain excellent...SAFR complements the operations of the PartnerRe operating company in terms of not only geographic spread of risk but also client base expansion into stable proportional property, motor and other fairly short-tail lines of business.''