been upgraded to "A'' (Excellent) from "A-'' by ratings company A.M. Best Co.

The higher rating makes it easier for the company to market itself to potential clients.

"The rating reflects the group's excellent financial performance, liquidity and conservative investment strategy,'' A.M. Best stated in a release. "It also reflects its experienced management team, which has profitably expanded the business since the holding company, Terra Nova (Bermuda) Holdings, was established in 1994.'' This week Terra Nova (Bermuda) Holdings Ltd. reported net income of $24.4 million, or 94 cents per share, for the first quarter ended March 31, a gain of 32 percent over the same period last year.

A.M. Best noted the company was the lead underwriter in the majority of the classes of business it writes -- property, casualty, marine, aviation and auto -- and is expanding its geographical presence.

Terra Nova bought Compagnie de Reassurance d'Ile de France last year and is taking an increasing larger share of Octavian Syndicate Management Ltd.'s underwriting capacity at Lloyd's.

"The group continues to concentrate on growth through acquisition during the soft market cycle and is seeking to position itself geographically and structurally to benefit from any future upturn in underwriting conditions,'' A.M. Best stated.

While most of the markets are under the pressure of increased competition, A.M. Best stated the group's profitable underwriting approach would help offset the trend.

"In addition premium growth is focused on the acquisition of a larger share in the business written by Octavian, which A.M. Best considers to be developed and historically profitable,'' the report stated. "Management also has made significant improvements in the group's overall reinsurance collection profile.''