Bermuda-based ACE has poured $60 million of additional capital into ACE Europe to steady its finances after the subsidiary reported a $90 million loss for 2001.

ACE injected $60 million into ACE Europe at the end of last year and added another $60 million this year, according to Standard & Poors, the ratings agency.

ACE Europe, which is based in Belgium but writes most of its business from London, suffered losses mainly because of large claims against its British property-casualty division.

The losses meant ACE Europe's capital adequacy ratio, a measure of an insurer's ability to pay claims calculated by S&P, fell below 100 percent.

But given ACE's capital injection, S&P decided that the losses would not affect ACE Europe's A+ insurer financial strength rating and sable outlook.

S&P assigns AAA, AA and A ratings, which can be modified with pluses and minuses, to insurers whose financial security is strongest. The ratings agency says insurers with A ratings are more likely to be affected by adverse business conditions than insurers with higher ratings.

ACE has entered into an agreement to provide ACE Europe with even more capital if it needs it.

Standard & Poors said the support agreements should ensure that ACE Europe's prospective capitalisation would remain at 125 percent of the required level this year.

S&P said it would review the ratings on ACE and its subsidiaries in the third quarter of this year.

The Bank of N.T. Butterfield & Son Ltd. yesterday announced that Butterfield Corporate Services Limited has changed its name to Butterfield Fund Services (Bermuda) Limited.

Andrew R. Collins, vice president and managing director of Butterfield Fund Services (Bermuda) Limited explained: “The change of name will better convey the nature of this increasingly important and fast growing business as third party fund and pension administrators.”

The Board of Directors of Trenwick Group Ltd. yesterday declared a dividend in the amount of $0.04 per common share.

The dividend will be paid on September 30, 2002 to common shareholders of record at the close of business on September 16, 2002. The dividend is the fifty-ninth consecutive quarterly dividend paid by the company or its predecessor company.

AM Best announces XL rating over shares AM Best, the insurance ratings agency, has issued an investment grade A- debt rating to XL Capital's pending issue of eight million new shares.

AM Best said the rating reflects XL's “historically strong and diverse earnings base, solid capitalisation, excellent liquidity and leading market position.” Most of XL's ratings from AM Best are A+ or A. None are below A-.

XL announced last week it would issue the new shares and sell them for $25 each to redeem bonds.