Best’s News & Research Service - September 21, 2018 10:16 AM (EDT)
A.M. Best Affirms Credit Ratings of Lloyd’s Syndicate 2010
- September 21, 2018 10:16 AM (EDT)
London //BestWire// - A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of Lloyd’s Syndicate 2010 (Syndicate 2010) (United Kingdom), which is managed by Cathedral Underwriting Limited. The outlook of these Credit Ratings (ratings) remains stable.
The ratings of Syndicate 2010 reflect the balance sheet strength of the Lloyd’s market, which A.M. Best categorises as very strong, as well as the market’s strong operating performance, favourable business profile and appropriate enterprise risk management. The Lloyd’s market rating is the floor for all syndicate ratings, reflecting the Lloyd’s chain of security and, in particular, the role of the Central Fund, which partially mutualises capital at the market level.
For the 2018 year of account, the syndicate’s capacity was maintained at GBP 306 million. Cathedral Capital (1998) Limited, the ultimate parent of which is Lancashire Holdings Limited, provides 58% of Syndicate 2010’s capital. The remainder is provided by third party Lloyd’s members.
The syndicate’s five-year weighted average combined ratio of 85% (2013-2017) is better than that of Lloyd’s (96% for the same period). However, the syndicate’s performance is subject to considerable volatility from its exposure to large man-made and natural catastrophe losses, demonstrated by a combined ratio of 150% for 2017 compared with 114% for Lloyd’s.
The business profile of all syndicates is inextricably linked to that of Lloyd’s, which has a strong position in the global general insurance and reinsurance markets. The collective size of the Lloyd’s market allows Syndicate 2010 to compete under the Lloyd’s brand with international groups. Syndicate 2010 writes a specialised and concentrated account of non-marine reinsurance, property insurance and aviation reinsurance business.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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