Ratings agency A.M. Best Co. has affirmed the financial strength rating of A- (excellent) for the operating subsidiaries of Bermuda-based Glencoe Group Holdings Ltd. and upgraded the outlook for the rating from stable to positive.

The affirmation of the ratings applies to Glencoe Insurance Ltd., Stonington Insurance Company (Addison, Texas), Lantana Insurance Ltd. and Stonington Lloyds Insurance Company (Addison, Texas).

The rating agency stated its actions reflected Glencoe's strong capitalisation and strong risk management capabilities derived from its strategic role within the RenaissanceRe Holdings Ltd. organisation.

These strengths are offset by the group's significant exposure to southeastern U.S. catastrophe losses, as evidenced in 2004 and 2005. A.M. Best believes that the group's affiliation with RenaissanceRe and the monitoring controls it has employed over the program managers mitigates the group's risk profile.