Bermuda based Latin American Reinsurance company Ltd. (LARe) has had their counterparty credit and financial strength ratio upgraded from "A" to "AA" by Standard and Poors (S&P) rating agency who also said the outlook for the company was stable.

"Latin America Re was founded on its ability to deliver an exclusive focus on the reinsurance market in its region," said Keith L. Shroyer, President and Chief Underwriter of Latin American Re.

"Now, with the global resources and explicit support of XL Re Ltd. (XL Re), we are able to continue this focus with even greater strength and stability, as recognised by Standard and Poors. We are serving clients with a deep commitment to underwriting expertise, advanced product consultation and a customer focused strategy."

The S&P report cited this support from XL as a major factor in upgrading the rating and said they believe: "LARe will be core to XL Re, and LARe is expected to benefit from being a member of a larger organisation through improved financial flexibility and the ability to offer clients both increased line limits and capacity.

"Operationally, LARe provides XL Re with a Latin American platform and enhances ultimate parent XL Capital Ltd's expansion efforts as a global reinsurer.

"Expectations are that LARe's limited client product overlap with XL Re and its affiliates - as well as its access to emerging markets - will provide strong growth and cross selling opportunities in the Latin American reinsurance and financial sectors."

President and CEO of XL Re, Henry C.V. Keeling said: "By bringing Latin American Re fully within the XL family, we are able to enhance LARe's core qualities and operational insight by leveraging those specialised assets with XL Capital, one of the world's most respected and diversified Insurance, Reinsurance and Financial Services companies.

Mr. Keeling added: "The Standard and Poors move to increase the rating to double A is a ringing endorsement of this alliance."

With offices in Argentina, Brazil, Columbia and Mexico, Latin American Reinsurance Company Ltd. (Latin America Re, Latin American Reinsurance and LARe) is dedicated exclusively to serving the growing needs of the reinsurance markets in Latin America.

Headquartered in Bermuda, Latin America Re was formed in 1997, and now it is a part of XL Capital Ltd.

As an XL re company, Latin American Re provides traditional and non-traditional multiline reinsurance and alternative risk management products.

The company has a claims paying ability rating of "AA" by S&P, "A-" from A.M. Best, and "A" from Duff and Phelps.

Headquartered in Bermuda, XL Re Ltd has branches in London, Singapore and Sydney, and through an affiliated company in the XL organisation, holds a 49 percent equity interest in French reinsurer Le Mans Re.

With links dating back to the formation of Mid-Ocean reinsurance Company ltd. in 1992, XL re is regarded as one of the world's largest multiline providers of catastrophe capacity, offering property catastrophe, other property lines, marine and energy, aviation and satellite and other lines, including political risk, credit and life reinsurance and financial products.