Lloyd's scoops top rating

Lloyd’s received a boost today after it’s top rating of A was reaffirmed by AM Best.

Lloyd’s fiancé director Luke Savage said: “We are very pleased that AM Best has reaffirmed our ratings and focused on our strong performance in difficult times. We have always known the attractiveness of our capital-efficient structure and our global licences are strengths for Lloyd’s, and we are pleased these have received special mentions.”

The rating agency’s reasons for reaffirming Lloyd’s ratings are strong; citing the following points:

• Lloyd’s will maintain a solid and flexible capital base through 2009 and into 2010, with central solvency also expected to remain strong;

• The potential of future draw downs on the Central Fund is expected to diminish given a reduction in run-off liabilities, increased oversight of syndicates and the completion of the Equitas deal; and

• Lloyd’s attractiveness continues to grow due to its efficient capital structure, access to global licences and as insurers seek to diversity their risk.

The agency said: “Lloyd’s has an excellent business profile, particularly in the U.S. and London market, and continues to expand its global reach through extension of its licence network and local trading platforms.

“The collective size of the market and its unique capital structure enable syndicates to compete effectively with major international insurance groups under the Lloyd’s brand.”