The $50 million-capitalised start-up Valient Insurance Company, owned by Ariel, has been given a financial strength rating of "A-" and an issuer credit rating of "a-" from AM Best.

The agency said the outlook for both ratings is stable.

Bermuda-based Valient will initially focus on professional and management liability in addition to other casualty lines of business.

Gary Dubois is president and chief executive officer.

According to a statement by AM Best, Valiant will be a critical component in the overall long-term diversification strategy of Ariel.

The agency said: "Valiant's ratings receive significant enhancement based on the tangible support provided by Ariel Re, which includes a quota share agreement, stop loss protection and a guaranty on third party reinsurance recoverables.

"In addition, the ratings reflect Valiant's ability to meet AM Best's stricter risk-based capital requirements for new company formations. The ratings also consider Valiant's business plan and experienced management team. These positive rating factors are offset by the challenges associated with a start-up company.

"Valiant will have to build and retain market acceptance, which will only be proven over time. Furthermore, casualty lines of business have been softening, which could potentially dampen expected returns if pricing fails to meet anticipated levels."