Bermuda-based Maiden Insurance Co. Ltd. and Maiden Reinsurance Co. have been affirmed the financial strength rating (FSR) of A- (excellent) and issuer credit ratings (ICR) of "a-" by AM Best Co.

Concurrently, Best has affirmed the ICR of "bbb-" of the parent holding company, Maiden Holdings Ltd. The outlook for all ratings is stable. The ratings reflect the solid capitalisation achieved through capital contributions to each entity from Maiden Holdings, which filled the net proceeds of a private placement offering, as well as half of the proceeds raised in a recent trust preferred offering.

Management anticipates infusing the balance of the trust preferred offering into Maiden Insurance during 2009 in support of operations. The ratings also reflect the operational benefits that Maiden Insurance derives as a 40 percent quota share partner with AmTrust Financial Services Inc.'s (AFSI) Bermuda reinsurance subsidiary, AmTrust International Insurance Ltd. (AII).

In addition, the ratings reflect Maiden Reinsurance's strategic importance to Maiden Holdings as a dedicated US reinsurance platform providing treaty, accident and health and specialty facultative reinsurance following its acquisition of GMAC Re and the renewal rights to business previously written through GMAC Re.

Best said that, partially offsetting these factors, are the limited risk taking experience, the execution risk faced by management in achieving its business plans and the risk inherent in profitably growing business amidst soft market conditions. Despite these concerns, the rating outlook is supported by the financial commitment of Holdings, the seasoned management team across MIaiden Insurance operations and the close working relationship that both Maiden Insurance and Maiden Reinsurance share with AFSI.