US Torus National Insurance Co. has had its financial strength rating revised to A- (excellent) from B+ (good) and its issuer credit rating (ICR) "a-" from "bbb-" by AM Best Co.

At the same time, the agency removed the ratings from "positive" review and gave them a "stable" outlook.

Torus National, earlier known as TIG Indemnity Co., is a subsidiary of Bermuda-based Torus Insurance Holdings Ltd (Torus).

This follows the completion of Torus National's acquisition by Torus from TIG Insurance Co, a holding company that is ultimately owned by Fairfax Financial Holdings Ltd., the agency said. Prior to its purchase, Torus National had been in run off since 2002.

The ratings of Torus National reflect the explicit support provided by Torus Insurance (UK) Ltd. (Torus UK), through the provision of a 65 percent whole account quota share agreement and aggregate stop loss protection, Best added.

Torus UK benefits from a similar reinsurance arrangement with Torus Insurance (Bermuda) Ltd., the main risk bearing company of the Torus Group.

Additionally, Torus National's ratings reflect the expectation that risk-adjusted capitalisation will be maintained at a strong level on a standalone basis, said Best.