Ratings agency A.M. Best Co. has upgraded the financial strength rating of Ace European Group Ltd, a subsidiary of Hamilton Bermuda-based Ace Ltd.

Best upgraded the rating of Ace European Group Ltd. from A to A+. Best said in a statement that it expects AEGL to maintain a strong standalone capitalisation between 2006 and 2008.

The upgrade reflects the importance of AEGL to the Ace Group, the rating agency said, adding that it believes that financial support is likely to be available in the future from AEGL's ultimate parent, Ace Ltd.

The ratings agency also affirmed the affirmed the financial ratings of A+ of Ace Group, which consists of Ace Bermuda Insurance Ltd., Ace Tempest Reinsurance Ltd. and Ace Westchester Specialty Group, whil affirming the ratings of A to Ace INA Insurance (Toronto, Canada) and Ace Life Insurance Company (Connecticut). In addition, Best has affirmed the ratings of A to Ace Insurance Limited (Australia) and Ace Insurance Limited (New Zealand).

Earlier this week, Fitch Ratings assigned CJSC Ace Insurance Company (Ace Russia) a rating of 'AA+(rus)'. The Outlook on the IFS rating is Stable.

Andrew Kendrick, chairman of Ace Europe, said: "Ace Russia commenced operations in April 2005 and is already making good progress in the Russian market, with principal focus being on technical lines, construction business and Accident and Health.

"Russia represents one of a number of exciting new opportunities for Ace in Europe as we continue our geographical expansion. The Russian economy is powering ahead, driven predominantly by exports of energy and other natural resources and there is undoubtedly significant future potential.

"Ace's commitment to the Russian market was further reinforced by the decision earlier in 2006 to acquire a 15 percent shareholding in the specialist reinsurer Russian Re."