Moody's Investors Service has downgraded the Syndicate Performance Rating of Chaucer Syndicates Ltd's Syndicate 1096 to B- (Below Average) from B (Average). The rating remains under review for possible downgrade.
The rating agency cited several reasons, including the syndicate recently announcing a deterioration on its US General Liability and Binding Authority accounts, with a loss of 25% of capacity being recorded for the 1999 Year of Account and a revised forecast for the 2000 Year of Account of a loss in the range -12.5% to -22.5% of capacity.
No forecast has yet been announced for the 2001 Year of Account but it is expected this will be affected by the 11 September attacks.
Moody's said: "With concerns over future backing for the syndicate, the potential for the syndicate to be merged into another entity and concerns over the syndicate's potential future profitability over the cycle, the syndicate has been downgraded to B- Below Average and placed under review for further downgrade."
