AM Best Co. has affirmed the financial strength rating of A (excellent) and issuer credit rating of "a" of Amlin Bermuda Ltd.

The outlook for both ratings of the Island-based reinsurance unit of the Lloyd's insurer Amlin is stable.

Best said Amlin Bermuda's risk-adjusted capitalisation remains excellent, reflecting conservative execution of its business plan and despite payment of a $200 million dividend to its parent to support the acquisition of Amlin Corporate Insurance NV (Netherlands).

In its commentary, the ratings agency said the unit's prudent approach to exposure management and broad spread of business in its target sectors continued to support the absence of a reinsurance programme.

Best said it expects Amlin Bermuda to report excellent profits in 2009 at both the underwriting level and overall.