A.M. Best Co. reported that it has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and the issuer credit rating to ‘a’ from ‘a-’ of Flagstone Reassurance Suisse S.A.The outlook for both ratings is stable.Best said: “The rating upgrades reflect FRS’ excellent level of risk-based capitalisation, conservative business plan, stringent underwriting guidelines, excellent enterprise risk management programme, as well as the commitment and experience of the management team at its parent, Validus Holdings, Ltd. (Validus). From a strategic standpoint, FRS will allow Validus to enhance and expand its business profile by providing a global underwriting platform for the anticipated writings of Validus’ agricultural and Latin American business portfolios and other property treaty reinsurance.“This structure will allow the company to continue to develop and maintain strong relationships with brokers and clients. Underwriting and risk management will be aligned with the wider Validus group through FRS’ use of the Validus Capital Allocation and Pricing System, a proprietary computer-based system for pricing and exposure management. As part of this new business plan, which is subject to final regulatory approval, there will be a reinsurance quota share between FRS and Talbot Underwriting Ltd.”Best said that FRS also is planning to write a small percentage of the existing Validus Reinsurance Ltd. US and European property treaty accounts on its balance sheet. “FRS is capitalised to a level that is in line with its current business plan.“Rating factors that could lead to FRS’ ratings being upgraded or an outlook revised to positive include long-term consistently strong operating performance relative to its peers, maintaining strong risk-adjusted capital levels and executing its business plan.”