INSURANCE BRIEFS

INSURANCE BRIEFS

ITT RATINGS CONFIRMED

IN WAKE OF GM DEAL

NEW YORK - Moody's Investor Service confirmed the "A3" long- term senior debt rating of ITT Corp. and its "Prime-2" short-term rating after

ITT announced it would buy an 80 percent interest in a General Motors Corp. unit.

Moody's said ITT's action "is a positive step that will broaden the company's worldwide automotive components and systems business." ITT will pay $400 million in cash for its investment in GM's Motors and Actuators Businesses unit.

This is part of the Delco Chassis division of General Motors Automotive Components Group Worldwide.

Moody's also confirmed the "A3" senior debt rating on ITT's Eurobonds, Euronotes, Swiss bonds, debentures and industrial development revenue bonds.

The rating agency additionally confirmed its "A3" rating on ITT's preferred stock and its "Prime-2" short-term rating for ITT's commercial paper.

MUTUAL INSURERS FORM

'CAT' REINSURANCE POOL

CHICAGO, Ill. - The National Association of Mutual Insurance Companies has created a catastrophe reinsurance pool for its members.

"The purpose of the program is to provide stable reinsurance capacity for Namic members," said Namic president Larry Forrester at the association's annual meeting Monday. "The long-term cost of this capacity will reflect the preferred experience of pool participants."

CNA Insurance Cos. of Chicago is the lead underwriter for the new program, which is expected to be in full operation by January. Besides providing additional catastrophe reinsurance to its members, the Namic policy includes a profit-sharing mechanism.