Bermuda-based AmerInst Insurance Group Ltd. has seen its financial strength rating removed from under review and affirmed a rating of A- (excellent) and an issuer credit rating of "a-" by AM Best Co.

The outlook assigned to both ratings is stable.

The ratings reflect AmerInst's strong capitalisation and experienced management team, as well as its niche expertise as a reinsurer of professional liability policies. Partially offsetting these positive rating factors are the company's narrow spread of underwriting risk, in addition to the execution risk associated with the implementation of the new business plan.

AmerInst intends to continue under its new business plan to employ a conservative reserving methodology under which it had historically booked to a higher loss ratio than that of its primary carrier. AmerInst has met Best's higher capitalisation requirements, which mandate a more conservative level of risk-based capital for a new business plan.

Best will continue to monitor AmerInst as it implements this business plan. Any material negative deviation from the business plan in terms of management, earnings, capitalisation or risk profile could result in negative ratings pressure.