Four more Bermuda insurance start-ups have been assigned financial strength ratings by AM Best, an influential ratings firm followed by most corporate insurance buyers.

The development brings the total number of rated entities in the so-called ?Class of 2005? to seven, with New Castle Reinsurance Ltd., Amlin Bermuda Ltd., Validus Reinsurance Ltd., Hiscox Insurance Company (Bermuda) Ltd. Lancashire Holdings Ltd. and Ariel Reinsurance Company Ltd. being assigned ?A-? ratings while Harbor Point Re Ltd. has won a higher ?A? rating.

The seven are part of a wave of ten insurance and reinsurance recently licensed by the Bermuda Monetary Authority to join the Island?s burgeoning insurance market. The entrants are gearing up to take advantage of an expected rise in premium pricing when policies are renewed for 2006 after record losses this year from Hurricane Katrina and other deadly storms wiped up to $80 billion from insurers? balance sheets.

Lancashire, Hiscox, Ariel and Harbor Point were assigned ratings on Friday, while Amlin and Validus earned theirs on Tuesday, and New Castle, was rated last month.

AM Best said it was only assigning public ratings when a company has closed capital raising, with each reinsurer in this wave coming to market with initial capitalisation of between $500 million and $1.5 billion.

The ratings firm said it was looking for the new companies to ?maintain conservative capitalisation? during the start-up phase, which is generally considered to be a company?s first five years.

And stringent vetting is done to test the management, business plan and financial viability, ahead of any ratings action, AM Best analysts said.

All of the ratings, to date, were assigned a stable outlook, indicating the ratings are unlikely to change. AM Best analysts tracking the new activity have said the companies do face various execution risks, including a tight employment market for insurance and reinsurance specialists, and other infrastructure challenges that exist in the Bermuda market.

All of the companies rated so far, and several more queuing up to be rated, have had on-site visits from AM Best analysts, the ratings agency said.

Each entity can expect to come under the scrutiny of rating analysts more frequently than those insurers with longer track records, AM Best said.

Analysts are expected to review how companies are getting on, quarterly, or more frequently, during the first years of operation.

Ascendant Re Company Ltd., Arrow Capital and Flagstone Reinsurance Limited have also in the last two months been licensed by the Bermuda Monetary Authority as class four insurers.

This licence is reserved for highly-capitalised companies that generally have a business plan to sell policies on the open market. Specific information on the ratings assigned to the ?Class of 2005? companies can be found online at www.ambest.com.