Ratings agency A.M. Best Co. announced it has assigned a financial strength rating (FSR) of A- (Excellent) and an issuer credit rating (ICR) of ‘a-’ to Aurigen Reinsurance Company of America (ARCA) — whose parent company owns a Bermuda reinsurer as well.Aurigen Reinsurance Limited (Bermuda) has an FSR of A- and a ICR of a-.The outlook assigned to both ratings is stable.The ratings reflect ARCA’s role as the US marketing arm for the parent, Aurigen Capital Limited, which primarily provides life reinsurance to Canadian based companies looking to diversify counterparty exposure. Other rating considerations include ARCA’s adequate capitalisation for its projected business plan and the company’s access to additional capital to fund future growth.Partially offsetting these strengths are the execution risk for ARCA as it implements its US strategy along with ACL’s limited operating history.ACL has demonstrated the ability to grow market share in the Canadian market place and is expected to leverage that early success in the US market over the intermediate term.A.M. Best expects the ratings for ARCA to remain stable in the medium term.Negative rating actions could result if the planned growth strategies result in material unexpected negative changes in the company’s capitalisation, operating performance or business model.