Ariel Reinsurance Company Ltd has been affirmed the financial strength rating (FSR) of A- (excellent) and issuer credit rating (ICR) of “a-” by AM Best Co.Additionally Best has affirmed the ICR of “bbb-” of Ariel Holdings Ltd. The outlook for all ratings is stable.Best said that the ratings reflected Ariel Re’s strong level of risk-adjusted capitalisation and favourable operating performance since its inception, experienced management team and continued development of its business profile and enterprise risk management capabilities.The ratings also recognise the benefits garnered from being a member of Ariel Holdings and the diversification of the group’s operating platforms.But the ratings agency said that the strengths were partially offset by Ariel Re’s exposure to high severity, low frequency events as a property catastrophe writer, potentially exposing underwriting results to wide variations from year to year.However, the company’s risk-adjusted capital is at levels that have been stress tested to absorb significant catastrophe losses and therefore mitigate this concern.The outlook reflected expectations that underwriting results will continue to benefit from Ariel Re’s selective underwriting strategy and that the group will continue to produce favourable operating results and maintain excellent risk-adjusted capital levels, said Best.