Fitch has assigned an 'A' IFS rating to White Mountains Re Bermuda Ltd.

Fitch considers White Mountains Re Bermuda to be one of the two core businesses of White Mountains.

The 'A' IFS rating assigned to White Mountains Re Bermuda reflects a good recovery rating assumption in notching from the White Mountains Re group IDR given the policyholder priority status in Bermuda.

White Mountains Re posted $9 million of GAAP unfavourable reserve development in 2007, including $63 million for A&E ($52 million asbestos and $11 million environmental) following a detailed ground-up asbestos exposure study and review of environmental losses in the fourth quarter of 2007.

It also follows $28 million of strengthening for US casualty reserves, offset by $91 million of favourable development, primarily from property lines.