catastrophe reinsurer, LaSalle Re Ltd.'s 16-month old rating from "A-'' (A minus) to "A'' (Excellent).

Best said the rating reflects the company's strong capitalisation, geographic spread of exposures, excellent operating earnings, experienced management team and established position in the global reinsurance marketplace.

Best continued: "The rating also reflects the company's affiliations with AON Corp. and CNA Financial Corp., which provide administrative, actuarial, claim, investment services (AON) and underwriting services (CNA).

"Other positive rating factors include management's disciplined multi-line underwriting and opportunistic pricing philosophies, multi-faceted catastrophe modelling capabilities, and conservative exposure management techniques.'' Best said that LaSalle's senior management has reinsurance expertise, and the company's underwriting department has substantial worldwide experience.

Accordingly, the company underwrites conservatively, emphasises pricing discipline over premium volume and writes risks that provide appropriate risk/return profiles.

Best stated, "Management places emphasis on developing client relationships, providing high quality service, capitalising on opportunities in non-catastrophe product lines and managing its capital base relative to market conditions.

"These positive factors are offset by the challenges management faces in profitably expanding its book of business, particularly in light of increasing worldwide property reinsurance capacity and declining premium rates.

"Because of the company's relatively recent founding in 1993, its overall book of business has not been subjected to a major catastrophic event and, therefore, its underwriting strategies and exposure management techniques have not been fully validated.

"However, the company has improved its global spread of business, expanded into new lines of property, liability and marine business, and established new subsidiaries to access the London market.

"Further management has sought to protect the company's capitalisation and liquidity through a $100-million line of credit, an additional $200 million of retrocession protection, and a $100-million contingent capital option for balance sheet protection.

"A.M. Best believes that LaSalle Re is well positioned to build its franchise and withstand a number of significant catastrophic events, and therefore, views the company's long term rating outlook as stable.''