Ratings firm AM Best has affirmed the financial strength rating (FSR) of A (excellent) and upgraded the issuer credit rating (ICR) to “a+” from “a” of Hiscox Bermuda, Hiscox Insurance Company Ltd (Hisco) and Hiscox Guernsey.Concurrently, AM Best has affirmed the FSR of A (Excellent) and ICR of “a+” of Lloyd’s Syndicate 33 (United Kingdom), which is managed by Hiscox Syndicates Ltd (HSL), and affirmed the ICR of “bbb+” of Hiscox Ltd, the ultimate parent holding company of the Hiscox group of companies. The outlook for all ratings is stable.“The upgrades to the ICRs of Hiscox Bermuda and Hisco reflect the strategic importance of both companies to the Hiscox group,” AM Best said in a statement. “Hiscox pursues a successful strategy of balancing volatile international catastrophe business with more stable local specialist business, which has supported profitable performance in each of the last five years. The role of Hiscox Bermuda in this strategy is to provide access to Bermudian property reinsurance business, which is very profitable in below average catastrophe years, but subject to considerable volatility.“In contrast, Hisco provides access to UK and European local specialist business, which produces a stable earnings stream for the group. Each company has established a track record of good operating performance and has made a positive contribution to overall earnings during the last five years. Hiscox is expected to support the companies to the full extent of its financial strength. The upgrade to Hiscox Bermuda is also extended to Hiscox Guernsey, which cedes the majority of its premiums to Hiscox Bermuda.”