Latin American Re - a Bermuda-based company, which was recently acquired by XL Re - has been given an A.M. Best ratings increase from "A-" for excellent to "A+" for superior.

In a recent press release, XL said the A+ rating signals continuing market recognition of the Latin American Re's enhanced strength and stability, following the September 6 announcement of a new Standard & Poor's rating of "AA."

A.M. Best indicated their expectation that the company's earnings will improve "with increased new business volume combined with diligent underwriting and strong asset liability management processes." The ratings agency also stated that, "LARe's business plan projects reasonable volume and capital levels to support its insurance operations over the short-to-medium term."

Latin American Re's new status as a fully owned company of XL Re Ltd, a member of the XL Capital Ltd Group, is being recognised positively and represents substantial opportunities for the company going forward. A.M. Best states that Latin American Re is "well positioned to take advantage of this relationship, which offers strong synergies and should prospectively benefit the various markets with the increase of capacity lines and line limits."

Henry Keeling, XL Re CEO said of Latin American Re's ratings increase: "Together with the AA from S&P, we see the A.M. Best rating increase as a clear indicator that Latin American Re, under the XL Re umbrella, is firmly grounded to meet market needs and deliver on the long-term commitment so needed by Latin American companies in this economic climate."