AM Best Co. has affirmed the financial strength rating of A- (excellent) of Bermuda-based XL Life Ltd., part of the XL Life Group.

The New Jersey-based rating agency has also has affirmed the A- rating of XL Life Insurance and Annuity Company.

The outlook for all ratings is stable.

Best said the ratings of XL Life Group reflect its historically strategic role as the life insurance and reinsurance operations for XL. The ratings also reflect XL Life Group's adequate capital position, which has been supported by capital infusions from its parent.

Best added: "Partially offsetting these strengths are the operating losses incurred during the past several years, coupled with significant GAAP unrealised loss positions through third quarter 2009 and the limited operating profile of the XL Life Group."

In recent years, XL announced that it was shifting its focus on its property/casualty business segment. Subsequently, XL placed its remaining life reinsurance entities in run-off.

During 2009, XL Re Life America Inc., a subsidiary of XL, was sold to a US subsidiary of France-based Scor. At the same time, internal retrocession business was novated from XL Life, to a non US subsidiary of Scor.