stability rating of "A prime'' from Demotech, Inc., a recognised insurance industry rating service and insurance consulting firm.

American Safety is the US insurance subsidiary of Bermuda-registered American Safety Insurance Group, Ltd., which received a higher financial size rating (VII) from A.M. Best Co. in June.

Best also reaffirmed a rating of "A'' (Excellent) on a group basis with stable ratings outlook for American Safety, as well as its US subsidiary, American Safety Casualty Insurance Company, and its non-subsidiary affiliate, American Safety Risk Retention Group, Inc.

Lloyd A. Fox, President and Chief Executive Officer, said of the new ratings: "We are very pleased to receive the higher financial size rating from A.M.

Best and the higher financial stability rating from Demotech.

"The higher ratings, together with the increased capital base from our successful initial public offering in February 1998 and a growing portfolio of specialised insurance programmes, should enable our company to access a broader base of insurance business opportunities.''