Lloyd’s, the world’s oldest insurance and reinsurance marketplace, has confirmed its global leadership with its financial strength rating (FSR) upgraded by AM Best to A+ (superior) from A (excellent).
Additionally, AM Best has revised the Lloyd’s long term issuer credit rating to ‘AA-’ (superior) with a stable outlook from ‘A+’ (excellent) with a positive outlook.
The ratings agency says the result reflects Lloyd’s market’s excellent position in the global general (re)insurance market as a leading writer of specialty property and casualty risks, together with its strengthened balance sheet fundamentals and proven risk management capabilities.
The Lloyd’s market ratings serve as the baseline for all policies written at Lloyd’s, regardless of the Syndicates involved.
Mark Dutton, director W Denis, said: .
“As a fully accredited broker at Lloyd’s of London, we benefit from having direct access to the Lloyd’s market and our brokers trade daily with Underwriters in Lloyd’s in all major classes of insurance. This direct Lloyd’s access enables us to achieve truly innovative, intelligent and comprehensive insurance solutions. “
Burkhard Keese, Lloyd’s CFO greeted the ratings move by stating: “The upgrade from AM Best follows that of S&P Global at the end of last year, with both agencies acknowledging the strength and resilience of Lloyd’s balance sheet, its strong operating performance and its leading position as the global specialty insurance and reinsurance market.
“Capital management continues to be Lloyd’s focus to ensure the attractiveness of the Lloyd’s market for our customers, participants and investors. Our financial strength and solid capital platform enable us to deliver on our strategic growth ambitions and explore new and innovative solutions to enhance the fungibility of capital for our members.
“ We were able to renew the central fund insurance early this year and are currently exploring a post major market loss contingent capital solution for eligible members.”
The upgrade confirms Lloyd’s ability to attract and retain investors due to its unique value proposition which offers a capital efficient structure, and the market’s excellent position as the leading underwriter of global specialty property and casualty risks.
Ahead of Lloyd’s HY24 results on 5 September, AM Best believes the market will continue to produce a strong underwriting performance.
W Denis Group is a large independent insurance broking business, which includes two Lloyd’s Broker entities accessing Lloyds Europe for EU business as well as Lloyd’s of London for rest of world business. To discuss this further with a broker at W Denis, please make arrangements with Daniel Moss at [email protected] or on 0044 (0)113 2439812
