Moody's Investors Service has changed the rating outlook onGeneral Reinsurance Corporation and General Re Corp. from negativeto stable.

The rating service affirmed the "Aaa" insurance financialstrength rating of General Reinsurance Corporation and the "Aa1"senior debt rating of General Re Corporation.

Moody's said the ratings reflect the firm's solid marketposition as a global reinsurer and its significantly improvedunderwriting results in recent years.

The ratings also reflect explicit and implicit support from theultimate parent, Berkshire Hathaway Inc., and from other majoraffiliates, Moody's said. Without such support, it added that theratings would be lower.

Moody's initiated the negative outlook in Sept. 2001, followingthe 9/11 terrorist attacks. It was prolonged by adverse lossdevelopment at General Reinsurance, particularly with respect tobusiness written during the soft market years of 1997-2001, and byongoing regulatory investigations.

After incurring underwriting losses totaling several billiondollars from 1999 through 2002, General Reinsurance has sharplyimproved its underwriting results in recent years, said Moody's.The company has benefitted from renewed discipline, a favorablepricing environment, and tighter terms and conditions. Thesefactors enabled the company to substantially increase its capitalbase.

Moody's said it believes the company is well positioned to takeadvantage of any market hardening in the wake of the 2005 hurricaneseason.

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

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

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

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