A.M. Best Co. affirmed the ?A-? financial strength rating and issuer credit ratings of Max Re Ltd. as a reflection of the Bermuda-based company?s diversified mix of traditional property/casualty products, along with its life and annuity business, solid operating results and an experienced management team. All ratings have a stable outlook.

MaxRe?s book of business ? predominately long-tail casualty lines ? is fully supported by the company?s excellent level of risk-based capitalisation and risk management controls, Best said in its ratings release.

MaxRe has responded to more attractive property/casualty premium rates over the past several years by increasing writings in more traditional property reinsurance and insurance products, Best said. For the year-ended December 31, 2005, Max Re?s property/casualty results were just under breakeven despite 2005 hurricane season losses of approximately $123.4 million.

?The operating results continue to be complemented by the performance of Max Re?s traditional and alternative investment portfolios. The alternative investment portfolio consists of highly diversified and closely managed hedge funds,? Best said.

Offsetting the positives are the long-tail casualty orientation of MaxRe?s book of business since pricing and reserve adequacy may not be apparent for several years. The potential variability of Max Re?s alternative investment portfolio introduces an elevated risk factor to the company, however, the ratings agency noted that the risk factor is included in Max Re?s risk-based capital model.