Ratings agency A.M. Best Co. yesterday affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of ?a-? of Aspen Insurance Limited (AIL) (Bermuda) and said the outlook for both ratings remains stable.

Best said AIL?s risk-adjusted capitalisation was likely to remain excellent at year-end 2006, benefiting from an anticipated 100 percent retention of earnings of approximately $160 million to $170 million.

Best said it that while the anticipated earnings reflected high profits as a result of the benign 2006 hurricane season, it said it had factored in potential volatility of earnings in the future because Aspen had a substantial property catastrophe account.

And it said a group-wide ?risk tolerance reassessment?, which would result in lower probable maximum losses was likely to partially offset this volatility.

Best?s said it expected Aspen?s net premiums written to fall by eight percent to ten percent in 2006 due in part to the risk tolerance reassessment, followed by a significant anticipated increase of approximately 40 percent in 2007.

The 2007 increase in NPW is due to changes to its inter-group reciprocal quota share arrangement with Aspen Insurance UK Limited (AIUK), continued favourable rate increases in its US-exposed property catastrophe account and an anticipated uplift in net premium income from structured risk business., Best said. Best predicted Aspen would have a strong year in 2006 with a combined ratio of between 85 percent and 90 percent compared to 136 percent in 2005.

?A.M. Best believes AIL is likely to achieve a similar strong performance in 2007 (subject to catastrophe experience), factoring a continuation of the firm property catastrophe market and some softening in its other main lines of business.?