Best's News


Best’s News & Research Service - August 17, 2017 11:41 AM (EDT)

A.M. Best Affirms Credit Ratings of Lloyd’s Syndicate 1225

  • August 17, 2017 11:41 AM (EDT)
    print icon

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 1225 (Syndicate 1225) (United Kingdom), which is managed by AEGIS Managing Agency Limited. The outlook for these Credit Ratings (ratings) is stable.

The ratings of Syndicate 1225 reflect the financial strength of the Lloyd’s market, which underpins the security of all Lloyd’s syndicates. In addition, this syndicate benefits from its association with Associated Electric & Gas Insurance Services Limited (AEGIS), which is the ultimate parent of its main capital provider, AEGIS Electric & Gas International Services Limited.

Syndicate 1225 has a record of good operating performance in recent years, as demonstrated by a five-year (2012-2016) average combined ratio of 86%. In 2016, the syndicate achieved a strong result, reporting total comprehensive income of GBP 59.6 million and a combined ratio of 93% (2015: GBP 66.3 million and 82.5%). The deterioration from the prior year reflects moderate catastrophe claims experience in 2015. Large losses in 2016 include the AMOS 6 satellite, the Fort McMurray wildfire in Canada, Hurricane Matthew and a New Zealand earthquake.

The syndicate writes a well-diversified portfolio of property and casualty business. Diversification has improved significantly in recent years, due to a combination of growth in new classes and a reduction in the energy and utility lines that previously dominated the book. Syndicate 1225 maintains a good business profile and considerable expertise in energy and utility insurance despite this reduction, supported by its association with AEGIS, which is a Bermuda-based mutual serving U.S. utility and energy companies.

Partly offsetting these strengths are the potential for earnings volatility due to exposure to catastrophe losses and the effect of exchange rate movements on the expense ratio, as well as the challenging rate environment.

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.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source.



Financial Strength Lloyds Press Release A.M. Best Rating Services, Inc. Insurance Lloyds Syndicates Issuer Credit Rating Best's Credit Rating Action Rating Event


Latest News

More from Best’s News


Trending

AM Best TV

More Related Company News

To Submit News go to - https://www.ambest.com/bestweek/submitnews.html