ability ratings from Standard & Poor's.

The rating applies to Terra Nova (Bermuda) Insurance Company Ltd. and the UK company, Terra Nova Insurance Company Ltd. S&P assigned a double `B' senior debt rating to the proposed $100 million senior guaranteed notes due in 2005 to be issued by Terra Nova Insurance (UK) Holdings plc and guaranteed by Terra Nova (Bermuda) Holdings Ltd., said Bloomberg business news service. The claims paying ability rating for Terra Nova (Bermuda) Insurance reflects its strategic and operational role in the Terra Nova group, as it provides substantial reinsurance protection for its UK sister company. The senior debt rating reflects the long history of the Terra Nova Group as a significant London market insurer and reinsurer and a strong capital base augmented by the offering. Offsetting these strengths are modest financial results in recent years, although the company has exited most of the lines that caused problems in the past. The parent is the Bermuda holding company.