The US reinsurance arm of Bermuda-based Maiden Holdings Ltd. has been assigned an A- (excellent) financial strength rating from AM Best.

Maiden Reinsurance Company is the new name given to GMAC Direct Insurance Company, acquired as a shell by Maiden last year.

"The ratings reflect Maiden Reinsurance's strategic importance to Holdings in forming a dedicated US reinsurance platform providing treaty, accident and health and specialty facultative reinsurance," AM Best said in its commentary, released yesterday.

"Additionally, the ratings reflect Holdings' financial commitment and strong balance sheet, as well as management's commitment to maintain underwriting discipline as former GMAC Reinsurance business is written through Maiden Reinsurance. In support of the transaction, Holdings' management raised approximately $260 million through a trust preferred offering, of which $129 million was infused into Maiden Reinsurance."

Best has also assigned Maiden Re an issuer credit rating of "a-".