Allied World Assurance Co. Holdings Ltd. has officially launched its US reinsurance platform following the completion of the acquisition of Finial Insurance Co, formerly known as Converium Insurance (North America) Inc., which closed last month.

The company is being renamed Allied World Reinsurance Co. to reflect Allied World's new reinsurance brand identity, Allied World RE.

The company has been capitalised with more than $500 million of statutory surplus, has received an A (Excellent) financial strength rating from AM Best and is licensed to write reinsurance and insurance business in 49 states and the District of Columbia. The company's operations will focus on providing a range of reinsurance products including casualty, professional and property treaty lines of business.

John Bender, chief operating officer of US reinsurance, will be responsible for developing and managing Allied World's US reinsurance operations. Mr. Bender is based in Allied World's New York office.

Allied World's president and CEO, Scott Carmilani, said: "The establishment of our new US reinsurance company will allow Allied World to be closer to our very important US customers and broaden our reinsurance product offerings. We will now be able to work with ceding companies and intermediaries whose business does not typically find its way to the Bermuda marketplace."

• Allied World Reinsurance Co. has been assigned a financial strength rating of A (excellent) and an issuer credit rating of "a" by AM Best Co.

The outlook assigned to both ratings is stable.

Allied World Re will serve as the domestic reinsurance operating platform, which will complement the existing Bermuda-based reinsurance operating platform. The new company has capitalisation of approximately $500 million and will initially focus on general casualty, professional and property lines of business.

The ratings reflect Allied World Re's ability to meet Best's stricter risk-based capital requirements for new company formations.

Partially offsetting these positive rating attributes is the execution risk associated with being a start-up company. This risk is slightly mitigated by the support of an established parent company; however, market acceptance needs to be built and retained, which will only be proven over time. In addition, softening market conditions and downward pricing pressures have been prevalent. Best will closely monitor Allied World Re against its stated business plan.