Max Re Ltd., the primary operating subsidiary of Max Re Capital Ltd., has had its A- (Excellent) financial strength rating affirmed by ratings agency A.M. Best.

The affirmation is an endorsement of the Bermuda-based insurer's decision last year to move away into traditional casualty lines of insurance and reinsurance and away from the company's original business model which focused on alternative investments and structured reinsurance products.

A.M. Best said on Friday: "The rating reflects Max Re's secure risk-adjusted capitalisation, experienced and effective executive management and underwriting teams, prudent approach to managing alternative investments and integrated approach to enterprise risk management.

"Offsetting these advantages in part is the company's aggressive expansion through 2003 into more traditional casualty lines of insurance and reinsurance, which have supplanted finite risk reinsurance as the primary source of new business."

Best noted that Max Re had recruited a group of highly experienced senior underwriters to manage the shift to more traditional lines of business, in response to the attractive premium rates in the property/casualty market.

"As investment yields have remained low, finite risk business has become relatively less attractive ? given the importance of investment spreads to that line's profitability ? prompting Max Re's shift to traditional lines of business.

"Max Re's alternative investments are highly diversified, well managed and represent the company's surplus," A.M. Best added.

Max Re also announced on Friday that Stephan Bub had resigned from the company's Board of Directors.

Robert Cooney, chairman, president and chief executive officer, said: "We are sorry to see Stephan leave. He has made a valuable contribution to the Company during the period he has been with us. We wish him well in his future endeavours."

Max Re also declared a quarterly dividend of three cents a share. The dividend is payable on February 23, 2004, to shareholders of record on February 13, 2004.