A.M. Best Co. has upgraded the financial strength ratings (FSR) and issuer credit ratings (ICR) of several operating companies of Bermuda-based Hiscox Ltd due to the "excellent consolidated risk-adjusted capitalization" of the parent company.

The Oldwick, N.J.-based rating agency increased the FSR of Hiscox Insurance Company (Bermuda) Limited (Hiscox Bermuda), Hiscox Insurance Company Limited (Hisco), and Hiscox Insurance Company (Guernsey) Limited (Hiscox Guernsey) to "A" from "A-minus," and increased the ICR of the companies to "a" from "a-minus."

Regarding Hiscox Bermuda, Best said its risk-adjusted capitalization is stronger and has stabilized earlier than anticipated since its 2005 start. This is partly because a lower growth in net written premiums means the company has not paid a dividend since 2005 and has been able to retain its earnings. Best also cited Hiscox Bermuda's underwriting portfolio and the reinsurance ceded to it from other Hiscox group members.