Lancashire Insurance Co. Ltd. and Lancashire Insurance Co. (UK) Ltd. have been affirmed the financial strength rating of A- (excellent) and issuer credit ratings (ICR) of "a-" by AM Best. The outlook for all ratings is stable. The rating agency said the actions reflected the group's solid level of risk-adjusted capitalisation, strong operating results since inception, focused business strategies and high quality management team. They also show the financial flexibility of Lancashire Holdings, which benefits from its listing on the London Stock Exchange and inclusion in the FTSE 250, as well as its very modest financial leverage.

Additionally, the ratings recognise the group's enterprise risk management framework, which has resulted in comparatively strong overall performance measures despite the challenges on both sides of the balance sheet during 2008, said Best.