IPCRe Ltd.

"The rating reflects the company's strong capitalisation, tightly controlled exposure management, geographically diversified book of business, good operating earnings, capital growth and AIG sponsorship and support,'' A.M.

Best stated in a press release. "In addition, the rating reflects the company's established position as a catastrophe reinsurance specialist.'' A.M. Best said the offsetting factors in the ratings are the company's recent start-up. "The company's underwriting strategies and exposure management techniques have not been fully validated, due to its limited claim history,'' the ratings agency stated. "In addition, the company has additional competition and capacity while entering the market, which in turn results in the further softening of prices.''