A.M. Best Company has affirmed the financial strength rating of A- (Excellent) and issuer credit rating (ICR) of "a-" of Aspen Insurance Limited (AIL) (Bermuda).

A.M. Best has also has removed the ratings from under review with negative implications. The outlook for both ratings is stable.

A.M. Best believes AIL's risk-adjusted capitalisation is likely to be supportive of the current rating, factoring the $US 560 million capital injection from AHL (Aspen Insurance Holdings) between October and December 2005 which helped compensate for the impact of the 2005 hurricane season.

Following a reassessment of its group-wide risk tolerance, AHL has put in place a new reciprocal quota share arrangement between AIL and its UK operation, Aspen Insurance UK Limited (AIUK), in order to re-balance the exposure of the group's property reinsurance account.

The quota share agreement was also put in place to reduce the strain placed on AIL's risk-adjusted capitalisation.

A.M. Best anticipates a strong profit after tax in 2006 for AIL and a return on premium of between 15-20 percent (factoring a return to normal levels of catastrophe experience).

A.M. Best also expects a combined ratio for 2006 of between 85-90 percent and a stable investment return in excess of 3 percent.

AIL's exposure to the series of major catastrophes in the second half of 2005 is expected to result in a significant increase in the combined ratio for the year from the 88.6 percent recorded in 2004.

A.M. Best believes AIL has maintained its excellent business profile and expects growth of between 15-20 percent in AIL's gross written premium during 2006 despite an anticipated reduction in property catastrophe premium income.

Following the 2005 hurricane season, the Aspen group has reorganised this account in order to reduce the expected gross written premium on AIL's book by 16 percent in 2006.

The overall premium growth anticipated is due mainly to an expected 125 percent increase in premium from the structured risk account.