AM Best Europe Rating Services Ltd has affirmed the financial strength rating (FSR) of A (excellent) and issuer credit ratings (ICR) of “a” of Catlin Insurance Company Ltd (CICL), Catlin Insurance Company (UK) Ltd and Catlin Re Switzerland Ltd.The rating agency also affirmed the FSR of A (excellent) and ICR of “a+” of Lloyd’s Syndicate 2003, which is managed by Catlin Underwriting Agencies Ltd. At the same time, Best has affirmed the ICR of “bbb” of Catlin Group Ltd, the Bermuda-based parent company of the Catlin group. The outlook for all ratings remains stable.The ratings of syndicate 2003 reflect the financial strength of the Lloyd’s market, which underpins the security of all Lloyd’s syndicates. In addition the syndicate benefits from the financial flexibility provided by Catlin Group, said Best.Catlin UK and Catlin Re benefit from the explicit support provided by Catlin Insurance Company, through its provision of capital to support growth, said Best. Since the beginning of 2011, the intra-group reinsurance, which was previously provided by Catlin Insurance Company, has been underwritten by the Bermuda-based branch office of Catlin Re.The Catlin Group’s consolidated risk-adjusted capitalisation is expected to remain strong, despite anticipated deterioration during 2011, due to premium growth and a reduction in retained earnings, said the ratings agency.At year-end 2011, consolidated shareholders’ funds are expected to be modestly lower than the $3.4 billion reported at year-end 2010, taking into account estimated catastrophe losses in the first half of the year of $534 million (net of reinsurance and reinstatements). The impact of large losses in the second half of 2011 on earnings and capital is likely to be limited by recoveries from the group’s worldwide catastrophe aggregate reinsurance programme. The aggregate deductible on the programme has been substantially eroded by first half 2011 losses.