Moody's Investor Services has upgraded the performance rating of Lloyd's Syndicate 727 managed by SA Meacock.
The rating has been upgraded from B- (below average) to B (average) with a stable outlook.
Moody's said the announcement concluded the review for possible upgrade for the US property-based non-marine syndicate, which was initiated in April 2004. The review followed the completion of Moody's forecasting exercise for Lloyd's syndicates.
It said that with the 2002 and 2003 accounts now substantially off-risk, it expects that Syndicate 727 should deliver profits in excess of 10% of capacity for the 2002 to 2004 years of account. The managing agency's current forecast for the 2002 account is a profit in the range of 10% to 20%.
Moody's said the age of the syndicate's active underwriter, Michael Meacock, 67, had led to some uncertainty over the future of the business for the next few years.
The company had previously downgraded the syndicate's rating to B- (Below average) in early 2002, based on concerns that capacity could fall materially either due to Meacock leaving unexpectedly or there being no public plans over an exit route.
However, Moody's said it believed it was now more likely that current deputy Alec Taylor would be appointed active underwriter should Meacock leave the business.
Moody's also added that support for the syndicate from Lloyd's Names remains good, and with there being a limited number of alternative syndicates available for the Names to support, it considers it more than likely that Syndicate 727 would retain the support.
