Hiscox Bermuda ? the former Lloyd?s of London company which redomiciled on the Island last year ? has received an affirmation of its A- ?excellent? financial strength rating from A.M Best.

The ratings agency says Hiscox is likely to maintain excellent risk-adjusted capitalisation, based on conservative performance forecasts. And Best anticipates that shareholders funds will increase, through the retention of earnings, to over $700 million by the end of 2007.

This will be sufficient to support anticipated growth in the business over the period.

Performance is likely to be supported by strong rates and the company?s portfolio of internal Hiscox group reinsurance of accounts with a proven track record of profitability, Best added.

Internal reinsurance business is likely to comprise approximately 40 percent of Hiscox Bermuda?s gross premium in 2007.

Best also affirmed the issuer credit rating (ICR) of ?a-? of Hiscox Bermuda. At the same time, A.M. Best has affirmed the financial strength rating of A- (excellent) and the ICR of ?a-? of Hiscox Insurance Company (Guernsey) Limited, which is substantially reinsured by Hiscox Bermuda and other Hiscox group insurers. The outlook for all ratings remains stable.