Bermuda-based Attorneys' Liability Assurance Society (Bermuda) Ltd. (ALAS), the largest single insurer of US law firms in the world, has kept its Standard & Poor's rating despite a tough market.

The rating agency yesterday affirmed its double `A' financial strength and counterparty credit rating on Attorneys' Liability, and subsidiary Attorney's Liability Assurance Society Inc. Risk Retention Group.

However S&P stated its outlook on the mutual insurance company was negative.

"The negative outlook reflects Standard & Poor's concern that the soft market which characterises the current property casualty environment may eventually undermine ALAS' ability to remain profitable, which may strain its capital base and current market position,'' the agency stated.

From its offices in Bermuda Attorney's Liability provides insurance to about 50,000 US lawyers who are members of the company, and has $1.6 billion in assets.

"I am very pleased that in this soft insurance market our double `A' rating has been affirmed,'' said an ALAS spokesman yesterday.

Standard & Poor's rating is based on ALAS's strong market position. "ALAS is the premier attorneys' liability writer whose client list includes the `who's who' of the legal world,'' the agency stated. "The company writes 40 percent of the eligible firms in its niche, and has established strong relationships with its insureds.'' Other rating factors include the company's experienced management and "extremely'' strong capitalisation.

On the downside is the company's declining operating performance which has shifted over the past few years in response to competition in its market.