invest $75 million in Capital Re through the purchase of common stock.

The proceeds will be used to increase the surplus of Capital Re's operating subsidiaries. The deal was originally announced on February 23 on condition that Moody's Investors Service would affirm Capital Re's triple-A financial strength rating.

But on March 10 Moody's assigned the company an Aa2 rating and Capital Re and ACE entered into negotiations.

Following that rating action, Capital Re and ACE entered into discussions.

Capital Re and ACE said the agreement had been confirmed with modifications.

The purchase price will be lower and ACE will be entitled to designate two directors to Capital Re's board of directors. The deal does not restrict ACE from buying additional shares in the company. Capital Re provides mainly financial guaranty and financial risks reinsurance.