The principal subsidiary of Bermuda-based Imagine Reinsurance Holdings has been assigned an A rating by Fitch.

Imagine Insurance Company, a newly formed finite risk reinsurer based in Barbados, attained the A insurer financial strength rating in respect of its strong level of initial capital. The rating also reflects the company's relationship with its majority shareholder, Trilon Financial Corporation, and the significant insurance experience of the principal members of Imagine's management.

The company's low volatility product line and conservative investment strategy were also pertinent to this rating. Partially offsetting the low risk nature of these strategies, Fitch expects the company will employ a relatively high level of operating leverage when measured by premiums written to equity, or insurance liabilities to equity.

Fitch also recognises that the company faces the normal risks associated with any start-up company. Additionally Imagine's premium earned to date has been generated from a relatively small number of contracts and Imagine may face substantial competition from other more established reinsurers. Fitch believes the company's success will depend on its continued ability to write low volatility reinsurance products .