by A.M. Best Co., the US's oldest insurance company rating firm.

A.M. Best usually requires a company have at least three years of experience before granting a rating.

Glencoe was incorporated January 2, 1996.

The rating is significant because it creates new business opportunities, Glencoe said.

"The occasional objection by clients and financial institutions to a non-rated company has been removed.'' Glencoe, a subsidiary of RenaissanceRe Holdings Ltd., writes property insurance against natural catastrophes.

On Friday, it was announced that A.M. Best had assigned the primary insurer an initial A- (excellent) rating.

"Glencoe (now has) entry into business opportunities where previously brokers, insureds, or lenders were hesitant to use `unrated paper','' Glencoe senior vice president Glenn Thomas said.

"It is very unusual for A.M. Best to grant a rating to a company without three to five years of business experience,'' he said.

"The rating reflects the company's very strong capitalisation, tightly controlled exposure management and excellent leverage and liquidity as well as the company's established position and recognised technical expertise within the property catastrophe market,'' A.M. Best said.

"These positive rating factors are derived from the company's disciplined and highly technical underwriting strategies.'' "The rating demonstrates Glencoe's high quality claims paying ability,'' Glencoe chairman Keith Hynes added.

The rating also reflects the parent company's strength.

Last July, the California Department of Insurance granted Glencoe a licence to operate in California, waiving a similar seasoning requirement.

Glencoe has also been approved by the National Association of Insurance Commissioners as an NAIC surplus lines insurer. All the National Insurance Brokers have similarly reviewed and approved Glencoe.