Nova (Bermuda) Insurance Company Ltd. and Terra Nova Insurance Company Ltd.

(UK).

The rating, as well as a financial size category of class eight, "reflects the group's strong balance sheet, improved liquidity, disciplined exposure management, geographic risk spread, premium growth through acquisition and experienced management team,'' Best said.

Terra Nova (Bermuda) president John Dwyer said it is very gratifying to have received Best's excellent rating.

This is Best's initial rating of the Terra Nova group.

Standard & Poor's also rates the group A-minus. In April, Duff & Phelps upgraded its claims paying ability rating of Terra Nova group to A from A-minus.

Terra Nova is a specialty property, casualty and marine insurance and reinsurance group. It operates through Bermuda and London subsidiaries.

On January 5, continuing with its market diversification strategy, Terra Nova purchased the business and assets of Octavian Syndicate management Ltd., a Lloyd's managing agency, consisting primarily the right to manage five existing syndicates at Lloyd's for the 1996 and subsequent years of account, Bloomberg Business News said.

Best views the 67 percent increase in net income in 1995 and the accomplishments by management in meeting strategic initiatives to restructure debt, be a leader in a few chosen markets, strengthen underwriting, improve the capital structure and position the group to take advantage of possible acquisitions, as significant achievements that position the group for continued growth.

The rating agency also said it viewed the company's rating outlook as positive and believes it is well positioned to maintain and enhance its position in the global marketplace.

ELAN TO BUY ADVANCED THERAPEUTIC BUC Elan to buy Advanced Therapeutic In a move to acquire Advanced Therapeutic Systems Ltd.'s (ATS) portfolio of products, Irish drugmaker Elan Corp. Plc will exercise its option to buy the Bermuda-based company for $141 million cash.

Elan expects to take a $141 million one-time charge and complete the transaction by the end of next month.

ATS, which develops new ways to deliver pharmaceuticals in the body, was formed in May 1993 and subsequently funded through a rights offering to Elan shareholders.

"It was pretty much assumed they would be purchasing this (to gain ATS's products),'' Cowen & Co. analyst Ian Sanderson said.

"Everyone who follows this company recognised that at $36 a share, it's a steal,'' he said.

As part of an earlier agreement, Elan had the option to buy ATS for $36 a share before October 31. After that, the share price was set at $49 until October 1997 and $61 thereafter, Bloomberg Business News said.

Elan, which has principal research and manufacturing offices in Ireland, the US and Israel, has been acquiring other companies, including Athena Neurosciences Inc. in June for $592 million.

NEW TAX RULES `A NON-ISSUE' -- EXPERT TAX New tax rules `a non-issue' -- expert New US tax legislation affecting tax-exempt US organisations that are shareholders of offshore captive insurers may not be as onerous as first feared, according to a Bermuda-based US tax expert.

Behind the scene lobbying helped exclude tax-exempt universities and hospitals from tax requirements related to their shareholding in foreign controlled corporations.

Tax experts previously had said when the Small Business Job Protection Act 1996 was signed by President Clinton that it would affect some Bermuda captives because certain tax-exempts would have to treat captive earnings as taxable unrelated business.

But US tax specialist with KPMG Peat Marwick/Butterfield and Steinhoff, Jim Blankenship, said: "The original draft of this bill didn't have a special carve out for hospitals, universities, medical service organisations and entities like that. And the final version did.

"I believe that the vast majority of people who would have been affected by the bill, are now not affected by it. It is now a non-issue. It's really just gone away for most, except for just a few.'' MEETING PROFESSIONALS TO HOLD FORUM CON Meeting Professionals to hold forum Meeting Professionals International (MPI) has scheduled a forum for the organisation's Bermuda chapter to focus on current trends in the meeting planning industry.

MPI executive vice president and CEO Edwin Griffin, Jr., MPI president Kathleen Ratcliffe as well as MPI directors Bob Moore and Evelyn Laxgang will attend.

The forum, to be held at the Sonesta Beach Hotel on Thursday, September 26, begins at 6 p.m. and will also cover an organisation's return on investment in a meeting professional.

MPI has over 14,000 members in 45 countries with 56 chapters. Its members plan meetings, conferences and trade shows. Suppliers providing event facilities and services are also members.

NOREX REACHES DEAL WITH PROSPERITY BUC Norex reaches deal with Prosperity Norex Industries Inc. will pay $4.7 million for all third party interests of Prosperity Investments Inc.

The purchase price includes interests in the investment vehicle amounting to 53 percent.

The major assets of Prosperity Investments include its 1.4 million shares as well as 8.3 million shares in DI Industries, Inc. and 82,235 shares of Transocean Offshore, Inc. while major liabilities include a $11 million bank loan and $15.7 million note.

Norex is a Bermuda company that owns securities issued by, and provides management to, companies engaged in offshore oil and gas industries and related industries as well as the passenger cruise industry.