New Castle Reinsurance Co. Ltd. (Bermuda) has been affirmed the financial strength rating (FSR) of A- (excellent) and the issuer credit rating (ICR) of a- by AM Best.

Concurrently, the ratings agency has affirmed the ICR of bbb- of New Castle Reinsurance Holdings Ltd. (Bermuda). The outlook for all ratings is stable.

Best said the rating affirmations reflect New Castle Re's solid risk-based capitalisation, experienced management team and strong operating profits in its first two years of operation. New Castle Re continues to meet AM Best's stricter risk-based capital requirements for companies that are considered to be in the start-up phase.

Essentially, New Castle Re has adhered to its business plans and kept AM Best fully apprised of its progress.

Besides being susceptible to low frequency, high severity events as a property catastrophe reinsurer, New Castle Re will continue to be challenged by increased competition within the industry as the company plots its course through the soft market cycle, Best added.