Amlin Bermuda, one of ten major insurance companies currently forming in Bermuda, has won an A- (Excellent) financial strength rating from leading ratings agency AM Best Co.

Amlin, which is being formed by its namesake, Lloyd?s largest independent insurer, was one of the first of the new Bermuda companies to officially open for business, having sold its first policies on December 1, when it closed its initial capitalisation of $1 billion.

Amlin joins New Castle Reinsurance Company Ltd., another in the so-called ?Class of 2005? to to earn an A- (Excellent) rating.

And it is expected that several other new Bermuda start-ups are close to being assigned financial strength and issuer credit ratings.

These include Hiscox, another new Bermuda insurer being formed by a parent active in the Lloyd?s of London market. Hiscox has said it expected a rating by mid-month. Also on AM Best?s radar are Ariel, Ascendant, Harbor Point and Lancashire.

The latter said it expected to be rated by December 16, the day it is formally capitalised (see separate story).

AM Best said it was looking for the new companies to ?maintain conservative capitalisation? during the start-up phase, which is generally considered to be a company?s first five years.

It will only initiate financial strength ratings on a company that has its initial financing, sufficient capitalisation, financial flexibility, can withstand stress-tests for profitability, amongst other measures, and has in place experienced management able to implement a five-year business plan supported by all principals.

The companies must also demonstrate that they have key personnel positions filled or candidates identified, and should have a strong infrastructure, including systems and operation controls for underwriting, claims, investments and financial reporting.

AM Best said Amlin passed the necessary tests to achieve the ?A-? rating, including the management, infrastructure and ability to implement its business plan, which AM Best said it regarded as ?credible?.

Amlin?s initial $1 billion capitalisation is derived from its parent company, Amlin plc, which provided the funds from a rights issue, short-term bridging financing as well as from existing resources.

A conference call is to be hosted by AM Best tomorrow at noon to discuss its assignment of ratings to the new Bermuda reinsurers.

The wave of 2005 start-ups are gearing up to take advantage of higher premium rates when insurance policies are renewed for 2006, jockeying to be ready for the busy January 1 renewal period.