AM Best Co. has affirmed the financial strength rating of A- (excellent) and issuer credit rating of "a-" of Bermuda-based Omega Specialty Insurance Company Ltd. The outlook for both ratings remains stable.

Best said OSIL's risk-adjusted capitalisation was likely to remain excellent in 2009 and 2010, after allowing for the transfer of $129 million from its parent company, Omega Insurance Holdings Ltd., following a successful capital-raising exercise at the end of 2008.

OSIL's risk-adjusted capitalisation is further enhanced by a comprehensive reinsurance programme that limits its exposure to major losses.

Best anticipates good underwriting performance in 2009, supported by the underwriting discipline and solid risk control infrastructure in place throughout the Omega group. OSIL derives approximately 60 percent of its gross premiums from Lloyd's Syndicate 958 (managed by Omega Underwriting Agents Limited), and its results are therefore likely to benefit from the profitability of the syndicate, which has a good earnings record.