OLDWICK, N.J.—A.M. Best Co. Inc. on Wednesday affirmed the A- financial strength ratings of Validus Holdings Ltd. and its affiliates, including IPC Reinsurance Ltd., and removed the group from under review with negative implications.

Best said the move was due to the “prospective benefits” offered through Hamilton, Bermuda-based Validus’ acquisition of IPC Holdings Ltd., which was completed on Sept. 4. Best added that the acquisition will provide Validus with a larger capital base and market profile.

“However,” Oldwick, N.J.-based Best said in a statement, “it will take time to truly gauge these prospective benefits’ impact on the Validus franchise.”

Best also said that offsetting Validus’ strengths is susceptibility to low frequency, high severity events as a property catastrophe focused reinsurer and the increased uncertainty over the short term due to the business that was previously underwritten by IPC.