The financial strength rating of new Bermuda insurer Lancashire Insurance Company has been affirmed, after being called into question earlier in the month after a founding executive quit. A.M. Best Co. on Friday said it was re-affirming its ?A-? rating on Lancashire Insurance Company, licensed as a major Bermuda insurance company in late 2005. And all ratings were assigned a stable outlook, indicating little chance of change.

A.M. Best, in a public statement, said it had completed a due diligence process begun after the unexpected departure of Lancashire vice-president J. Alex Richards, who had been senior retrocession underwriter. Lancashire recently appointed Simon Burton as deputy chief underwriting officer and Bryan Bumsted as vice-president and retrocession underwriter. Mr. Burton and Mr. Bumstead were lured away from other Bermuda insurers to join Lancashire: Mr. Burton from Ace Limited and Mr. Bumstead from Everest Re.

A.M. Best said with Mr. Burton?s expertise, Lancashire would be able to keep to the expected underwriting results and business mix under its business plan. Lancashire, like other new reinsurers that won ratings late last year, lodged their business plan with A.M. Best, as part of the initial ratings process.

A.M. Best closely monitors new company formations, and said deviations in management, earnings, capitalisation or risk profile are analysed for effect on meeting financial obligations.