Moody's initiated the negative outlook in Sept. 2001, following the 9/11 terrorist attacks. It was prolonged by adverse loss development at General Reinsurance, particularly with respect to business written during the soft market years of 1997-2001, and by ongoing regulatory investigations.

After incurring underwriting losses totaling several billion dollars from 1999 through 2002, General Reinsurance has sharply improved its underwriting results in recent years, said Moody's. The company has benefitted from renewed discipline, a favorable pricing environment, and tighter terms and conditions. These factors enabled the company to substantially increase its capital base.

Moody's said it believes the company is well positioned to take advantage of any market hardening in the wake of the 2005 hurricane season.

Moody's also confirmed the insurance financial strength ratings of Aspen Insurance UK Limited and Aspen Insurance Limited (both A2) and the Baa2 senior debt rating of Aspen Insurance Holdings Limited. This concluded a review for possible downgrade initiated on Oct. 5.

The rating service said the net loss range of $470-to-$535 million resulting from Hurricanes Katrina, Rita and Wilma, though large, is fully offset by a raising of $600 million in common equity and $200 million in hybrid capital since early October.

The move ensures strong capitalization of the group going forward and positions it well for the 2006 renewals season.

The company also introduced enhancements to its risk management systems and underwriting policies.