Bermuda-based Olympus Reinsurance Company Ltd. has been awarded an "A-" (Excellent) rating from A.M. Best.

Olympus Reinsurance Company Ltd. was formed in December 2001 to provide additional capacity to the insurance and reinsurance markets following the September 11, 2001 terrorist attack on the World Trade Center.

Through private equity funding led by Leucadia National Corporation, Gilbert Global Equity Partners and Franklin Mutual Advisors, Olympus Re was initially capitalised at $500 million.

Headed by Sheila E. Nicoll, an executive with over 20 years of experience in the international insurance and reinsurance markets, Olympus Re offers property catastrophe, property risk excess, property retro excess of loss, aviation and marine excess of loss coverage; other selected short-tail lines will be considered. "We are pursuing a different strategy from the other new players in the post-September 11 Bermuda marketplace," said Ms Nicoll. "We intend to remain a smaller, tightly-managed venture. Our focus is on conservative underwriting, fixed income investing and low overhead."

The company's strategy is to develop and maintain a top quality book of business, diversified geographically by cedant and exposure, laterally by class and vertically by attachment level.

Olympus Re has entered into a quota share agreement with Folksamerica Re (A.M. Best rating "A-"), an affiliate of the White Mountains Insurance Group, covering property excess of loss business mainly in the United States, Canada and Latin America. In addition, Olympus Re has contracted with White Mountains Underwriting Ltd. in Dublin, Ireland, to provide international reinsurance advisory services and to source and develop the portfolio in UK, Europe, Japan and Asia/Pacific regions.

Mark Stockton, formerly Chief Underwriting Officer of LaSalle Re Ltd. (Bermuda), heads up White Mountains Underwriting Ltd.

"The contractual relationship with White Mountains Underwriting Ltd. and the quota share agreement with Folksamerica provides Olympus Re the unique opportunity to market and underwrite property excess business under the guidance of seasoned, experienced underwriting professionals, and at a relatively low expense level," said Steven E. Fass, President and CEO of Folksamerica Re.

A.M. Best's initial rating reflects the company's extension of capacity for an established reinsurer, solid capitalisation and recognised management expertise.