A.M. Best Co. affirmed and removed from under review the ?A? financial strength rating and issuer credit ratings of Allied World Assurance Company, Ltd and its affiliates. The outlook for the ratings is stable.

Best?s action follows AWAC?s successful completion of its capital action plan, which returned AWAC to a risk-based capital level in line with the rating agency?s expectations.

AWAC used the proceeds of approximately $316 million from the issuance of common shares along with the issuance of $500 million in senior notes to repay an existing bank loan, seek new market opportunities and to maintain capital levels for the 2006 hurricane season.

Best noted that AWAC continues to transition away from original sponsor American International Group, Inc. as AWAC develops its own independent support systems and US distribution platforms.

?A.M. Best believes that AWAC?s transition will be successful as the company is expected to produce excellent operating results due to the development and successful implementation of stringent underwriting and risk management controls, along with favourable broker market acceptance,? Best said.