Rating agency AM Best has commented that the issuer credit rating of "bbb-" and all debt ratings of Bermuda's Montpelier Re Holdings Ltd are unchanged following the announcement that it has formed Lloyd's Syndicate 5151 and will subsequently enter into initiatives that are expected to increase Montpelier Re's distribution capabilities.

Additionally, the financial strength rating of A- (Excellent) and the ICR of "a-" of Montpelier Reinsurance Ltd is unchanged. The outlook for all ratings is stable. In addition to forming Lloyd's Syndicate 5151, which initially is expected to write a nominal amount of short-tail property/casualty business, Montpelier Re has established a US-based managing general agency, Montpelier Underwriting Inc (MUI).

MUI is expected to underwrite U.S. specialty business by utilizing the paper of Lloyd's Syndicate 5151. These strategic decisions are expected to diversify Montpelier's business mix, geographic position and distribution capabilities while utilizing its existing systems to underwrite short-tail risks including those that are not materially catastrophe exposed.

Senior management positions also have been filled at both Lloyd's Syndicate 5151 and MUI.