Moody's Investor Services has upgraded the performance rating of Talbot Underwriting's Lloyd's Syndicate 1183, from B (average) with a positive outlook, to B+ (above average) with a stable outlook.
With the team that is currently in place, the emphasis on spread underwriting, improved management controls and with good open year forecasts, with a profit of 15% forecast for 2002, Moody's said it considers that the syndicate should perform above the market average over the cycle.
The syndicate's rating has therefore been upgraded to B+ above average, reflecting the view that the syndicate will outperform the market over the cycle and offer above average continuity prospects for policyholders, it added.
Moody's said the upgrade took place despite some concerns over the potentially short-term nature of some of the venture capital support and how this might affect potential future performance and continuity.
Marine Syndicate 1183 merged with Syndicate 376 in the 2000 year of account. Syndicate 367 was placed into run-off at the end of 2001, following which Syndicate 1183 was restructured.
Syndicate 1183 is 545 backed by Talbot Holdings for 2004, with the balance of the backing from third party investors including Berkshire Hathaway, investment funds managed by Reservoir Capital Group LLC, Walsham Brothers and various reinsurers.
