Finite risk reinsurer Imagine Insurance Company?s ?A? insurer financial strength rating was yesterday confirmed by ratings agency Fitch.

Fitch also upgraded Imagine?s rating outlook to stable from positive, citing the reinsurer?s low risk underwriting book and growth in capital from $200 million to $500 million in the last four years.

?Fitch considers Imagine?s products to be a relatively low risk form of reinsurance where the timing of loss payments, rather than the frequency or severity of losses, represents the majority of the risk assumed by the reinsurer,? the agency said. ?Imagine combines this focus on low volatility insurance liabilities with a conservative investment strategy.?

Fitch noted that Imagine remains a relatively small operation compared to other Bermuda reinsurers, but said that was offset by the company?s ?minimal? property catastrophe exposure.

?Fitch expects Imagine?s management team will continue to bind predominately low-volatility, contractually capped reinsurance policies which place a limited amount of capital at risk,? the agency said. ?Additionally, Imagine will employ a conservative investment strategy for the assets supporting insurance liabilities, closely matching asset and liability maturities and currencies.?

Imagine is a Barbados-based general insurance company that was formed in and began conducting business in late 2000. Imagine is the principal subsidiary of Imagine Group Holdings Ltd. (together, the Imagine Group), a Bermuda-based insurance holding company formed in conjunction with Imagine.