A story in Wednesday's Business section should have that AM Best gave to Bermuda-based reinsurer Overseas Partners Cat Ltd (OPCat) an A financial strength rating.

Top ratings were assigned to the new Bermuda-based reinsurer Overseas Partners Cat Ltd (OPCat) by A.M. Best Company despite formal charges of fraudulent practises against the parent company -- Overseas Partners Ltd.

OPCat received a financial strength rating of A which is considered superior in the industry.

Only three weeks old, OPCat, a subsidiary of Overseas Partners Ltd. is a start-up catastrophe reinsurer initially capitalised at $400 million.

Locally based Renaissance Re are underwriters for the company.

A.M. Best admitting the pending legal proceedings may result in "significant compensatory and punitive damages'', said they believe the litigation will not have "a material financial impact on Overseas partners''. A.M. Best explaining their rating said that it is "based on the agreement between the two reinsurers and the recognition that while OPCat is a start-up operation, the company's risk profile will essentially be similar to Renaissance Re's strong franchise and recognised expertise in underwriting marketing, claims handling and administering of catastrophe re insurance business.'' A.M. Best also noted that while Renaissance Re is a leader in the catastrophe market that underwriting results of this class of business are "inherently unpredictable due to the severity and randomness of weather related losses''.

Holding that OPCat have an "aggressive investment portfolio'' A.M. Best noted that 40 percent is allocated to US and emerging market equities and they claimed that the investment risk, combined with the severity of loss profile of the company's catastrophe business, results in weak asset-liability management and exposes the company's capital position to volatility.