N.T. Butterfield and Son Ltd. has raised its US Dollar prime rate to 8.25 percent from 8.0 percent.

The Bank's Bermuda dollar base rate will move up by a similar amount to 6.25 percent on September 1.

In order to pass the benefits on to customers, the bank will raise its Bermuda and US dollar Strata and Passbook Savings Accounts rates by 0.25 percent, also on September 1. This makes the rate for strata savings accounts 3.25 percent for balances of $1,000 or less ranging up to 4.5 percent for more than $35,000. The passbook savings rate rises to 2.25 percent.

Calum Johnston, president and chief executive officer of the Bank of Butterfield, said: "This increase in rates demonstrates the bank's commitment to its customers by passing on to them the benefits of the higher US dollar interest rates.'' *** BAD. `FLYING FLAGS OF CONVENIENCE SHI Bda. `flying flags of convenience' Bermuda is among a list of countries accused by The International Transport Workers Federation (ITWF) of operating vessels under flags of convenience. The group again demanded better working conditions for seafarers employed on what it calls "these floating coffins''.

Ulrich Jurgens, captain of the ITWF flagship, the Global Mariner , last week accused vessels operating under flags of convenience of labour exploitation and violations and called on the world community to join forces to fight for better pay and welfare benefits and standardised working conditions for crew members.

Mr Jurgens said that more than 13,000 vessels operate under flags of convenience and there are 27 registries -- he named Panama, Cyprus, the Bahamas, Bermuda and Honduras -- which "earn up to one million US dollars each year providing flags of convenience registration.

The ITWF said owners of ships flying flags of convenience from these jurisdictions can exploit crew members because the countries where they are registered lack laws and regulations for the protection of seafarers.

*** S&P ASSIGNS `A' TO IPCRE EUROPE BUC S&P assigns `A' to IPCRe Europe Standard & Poor's ("S&P'') has assigned its single-`A'-plus financial strength rating to IPCRe Europe Ltd. ("IPCRe Europe''), a wholly-owned reinsurance subsidiary of Bermuda-based IPCRe Ltd. ("IPC'').

S&P takes the view that IPCRe Europe is core to IPC's operations. Explicit support from IPC is extended via a quota share agreement and an excess of loss and aggregate protection. These agreements provide worldwide coverage and are applicable to all policies that IPCRe Europe currently issues.

Also considered as an additional rating factor by S&P is that IPCRe Europe provides another pipeline to IPC's core product, excess property catastrophe reinsurance, for IPC's continental European clients.

IPCRe Europe was established in September 1998 and is party to a services agreement with AIG Insurance Management Services (Ireland) Ltd., which provides administration and management services.

An affiliate, IPCRe Services Limited, provides marketing services in Europe for both IPCRe Europe and IPC. In 1998, IPCRe Europe wrote three treaties, effective on October 1 of that year, with the bulk of current business underwritten during the January 1, 1999 renewal period.

*** INSURERS TO PAY $30M FO BRET BUC Insurers to pay $30m for Bret US insurers are expected to pay an estimated $30 million to businesses and homeowners in Texas for insured property losses from Hurricane Bret, according to preliminary estimates by Insurance Services Office Inc. Property Claim Services unit. Bret, the first hurricane to strike the US this season, made landfall on August 22 in a sparsely populated area south of Corpus Christie.

As the hurricane moved inland, winds decreased, sparing southern Texas from a major catastrophe.

PCS estimates that policyholders have filed with insurers more than 13,000 claims, most resulting from interior rain damage caused by leaking roofs. ISO PCS unit defines a catastrophe as an event that causes $25 million or more in insured property losses and affects a significant number of property and casualty policyholders and insurers.