A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and assigned an issuer credit rating (ICR) of “a-” to Wellington Specialty Insurance Company after its takeover by Bermuda-based Catlin Group Ltd.

The outlook for both ratings is stable. The ratings reflect Wellington’s strong capitalisation, conservative investment profile and the benefits it derives from having a solid balance sheet, which is unencumbered by long-term reserve liabilities.

The ratings also recognise the successful background of Wellington’s executive team in managing insurance company operations that focused on the excess and surplus lines market.

Management also has well established relationships with the general agencies that comprise the distribution channel for the company’s book of business.

A.M. Best will continue its discussions with management over the next few months regarding the revised business plan for Wellington, the US subsidiary of Lloyd’s underwriter Wellington.