Ariane rocket and US communciations satellite whch crashed last week.

The insurance market had approached ACE in an effort to secure reinsurance against the satellite launch on Thursday but the company balked.

Mr. William Loschert, executive vice president, and Mr. Charles Rudd senior vice president in charge of ACE's satellite insurance line agreed: "We were lucky.'' Insurance for the lost satellite was placed about one year ago, before ACE entered the satellite market.

"ACE was not involved with any of this loss but we were asked by various insurers to relieve the exposure,'' said Mr. Loschert.

By choosing not to reinsure this risk, added, Mr. Rudd, ACE "has strengthened its position in the (satellite) market''.

"It's too early to tell what the rates should be (after this incident) but there will likely be a contraction in world-wide capacity because of it,'' said Mr. Rudd.

Mr. Rudd suggested premiums will likely have to rise because the three international losses so far this year exceed premiums written by about $250 million.

According to Bloomberg Business News, Lloyd's of London syndicates are expected to be exposed to claims of $35 million for the Ariane which crashed into the South Atlantic.

US insurance brokers Space Machine Advisors, based in Greenwich, Connecticut, placed the $35 million insurance in Lloyd's through London-based broker Johnson and Higgins, Bloomberg added.

The Ariane space rocket which crashed on Thursday.