AM Best has upgraded the financial strength rating of Lloyd's from A- (excellent) to A (excellent).
At the same time AM Best assigned an ‘a' insurer credit rating to Lloyd's.
The outlook for both ratings was stable, it said.
AM Best said the ratings reflected Lloyd's improving prospective capitalisation, strong operating performance, its global reach and improvements in risk management.
A partially offsetting factor in the rating is Lloyd's exposure to long-term uncertainty relating to the adequacy of Equitas' reserves, although AM Best said it believed that Lloyd's was unlikely to be adversely affected by Equitas in the near term.
Responding to the rating upgrade, Lloyd's chief executive Nick Prettejohn said: “I am delighted that AM Best has recognised and rewarded Lloyd's underlying financial strength and excellent prospects for the future.
“I am particularly pleased that AM Best has highlighted the significant progress we are making to ensure Lloyd's is consistently high-performing and financially resilient.
“The agency has recognised the industry-leading results we delivered in 2003, and expects further strong underlying performance this year.”
