A.M. Best, the ratings agency, affirmed its rating of Bermuda-based Allied World Assurance Company (AWAC) yesterday, amid several ratings declines in the industry.

AWAC is rated A+ (Superior) by the agency and the rating applies to all of its operating subsidiaries. The outlook for the rating is stable.

A.M. Best also assigned an initial financial strength rating of A+ (Superior) to AWAC's Irish reinsurer.

It said AWAC's rating reflected, among other things, its association with sponsoring organisations like American International and Chubb.

AWAC's chief executive, Michael Morrison, projected that the hard insurance market would last into 2004. "There are still significant capacity shortages in some areas and we will be able to participate at advantageous terms because of this," he said.

W.P. Stewart dividend

W.P. Stewart & Co., an asset management company based in Bermuda, announced yesterday that it would pay shareholders a dividend of 30 cents per share.

The company said it would pay the dividend on January 30 to shareholders of record as of January 15.

Shares of W.P. Stewart traded down a quarter to close at $46.28 on the New York Stock Exchange yesterday.

Bank buys back shares

The Bermuda Stock Exchange said it was yesterday advised by the Bank of Butterfield that in December 2003 the bank or its subsidiaries bought back and cancelled a total of 22,800 of its own shares at an average price of $39.13.