Fitch ups Converium

Fitch Ratings said it upgraded Converium AG's insurer financial strength rating to BBB- from BB+ and Converium Holding AG's long-term rating to B+ from B. The outlook is stable.

Fitch said it believes that the recent closure of Converium's U.S. operations to new business is likely to have impacted negatively on the group's franchise and will result in a significant reduction in premium volume underwritten by the company in 2005.

In addition, Fitch said reinsurance business is very sensitive to the credit quality of reinsurers, particularly business sourced through the broker distribution channel.

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