Bermuda-based Catlin Group Ltd. has welcomed the upgrading of the financial strength rating of its operating subsidiaries to A from A- by Standard & Poor's.

The ratings agency also upgraded its Lloyd's Syndicate Assessment ('LSA') of the Catlin Syndicate at Lloyd's (Syndicate 2003) to 4 from 4-. In addition, S&P raised its long-term subordinated debt rating on the preferred shares of Catlin Insurance Company Ltd. to BBB+ from BBB.

The outlook for all of the ratings and the LSA is stable.

"The rating and assessment upgrades primarily reflect the improved financial profile of the Group," S&P said in a statement released yesterday. "The ratings and assessment also reflect Catlin's strong competitive position, strong operating performance, strong capitalisation and strong enterprise risk management."

Specifically, Standard & Poor's noted that it had raised its assessment of Catlin's enterprise risk management efforts to "strong".

It said: "ERM is highly important to the ratings given Catlin's expanding risk profile. The major factors supporting the assessment are a strong risk management culture, strong strategic risk management, and strong controls for insurance and reserving risk."

Catlin chief executive officer Stephen Catlin said: "I am very pleased that Standard & Poor's has increased its financial strength ratings of Catlin's core subsidiaries to 'A' and has also upgraded its assessment of the Catlin Syndicate at Lloyd's. In its commentary, Standard & Poor's recognises Catlin's strong capitalisation and operating performance, as well as our significant commitment to enterprise risk management.

"The upgraded Standard & Poor's ratings and assessment demonstrate the excellent financial security that Catlin offers to clients and their brokers worldwide. I am proud that the hard work of Catlin's more than 1,300 employees around the globe has been recognised by Standard & Poor's announcement today."