MS Frontier Re Rated ‘AA’

August 7, 2002

Standard & Poor’s has assigned its ‘AA-‘ insurer financial strength rating to MS Frontier Reinsurance Ltd. (MSFR), based on its superior capitalization, its strategic importance to its parent, Mitsui Sumitomo Insurance Co. Ltd. (MSI; AA-/Negative/A-1+), and the explicit support it receives from MSI.

As part of the MSI group’s strategy of expanding its overseas inward reinsurance business to take advantage of the recent hardening of premiums in the reinsurance market, MSI has repositioned MSFR as a catastrophic risk reinsurer and boosted the subsidiary’s capital to $100 million from $10 million.

MSFR will also assume the role of the group’s catastrophic risk retention vehicle to more efficiently manage the global MSI group’s exposure.

MSFR was originally established under the name of MM Reinsurance Ltd. in Bermuda in 1997.

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