Moody's Investors Service has placed the A2 Insurance financial strength rating of SVB's Lloyd's Syndicate 1007 under review for possible downgrade in light of continuing reserve deterioration affecting SVB.
Moody's stated that the placing of the rating on review reflected the lower earnings forecast for the syndicate's 2002 year of account as a result of continued reserve deterioration.
The syndicate recently revised its forecast profit for 2002 from 14.5% of capacity to 10% of capacity, but more significantly reflects the heavy reserve deterioration for SVB-backed run-off Syndicate 1241, whose 2002 forecast has recently deteriorated by 18% of capacity.
