Bermuda-based catastrophe reinsurer IPC Holdings Ltd. has had its A financial strength rating affirmed by ratings agency AM Best.

The rating applies to IPC's Bermudian and Irish reinsurance subsidiaries and to its debt ratings and preferred stock. The outlook for all ratings is stable.

Best said the ratings reflected IPC's excellent past performance, experience in the property catastrophe reinsurance market and customer-oriented focus.

"In order to minimise the impacts from catastrophic events, IPCRe's board of directors has established a preset percentage of capital, which limits aggregate accumulations in any single geographic zone," Best said. "IPCRe's management monitors this capital-based limits approach and diversifies the company's exposure around the world, which achieves an optimal spread of risk."

Best noted that the company's risk-adjusted capital position had deteriorated due to the record 2005 hurricane season, but added: "IPCRe's overall performance has been excellent due to its long-term orientation to risk exposure management."