Standard & Poor's rating service affirmed its double `A' counterparty credit and financial strength ratings on Attorney's Liability Assurance Society (Bermuda) Ltd. (ALAS) and Attorney's Liability Assurance Society Inc. Risk Retention Group.

S&P said the company continued to perform satisfactorily in the wake of poor industry developments in the professional liabilities lines. The outlook was stable.

"The ratings affirmation considers the company's very strong, specialised, and solidly performing niche business of providing professional liability coverage to large law firms, supported by extremely strong capital adequacy, conservative underwriting, and unparalleled client focus," said S&P's credit analyst Karole Dill Barkeley. Offsetting these positives are increasing claims trends, high reinsurance reliance, and a narrow business position.

S&P also said ALAS continues to perform well in the wake of negative industry trends, with a narrowly focused franchise, and that the company's strengths have built a sustainable competitive position, even if broader trends towards greater severity persist.