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A.M. Best Affirms Credit Ratings of Lloyd’s Syndicate 2001


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Yevgine Asatryan
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Mathilde Jakobsen
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FOR IMMEDIATE RELEASE

LONDON - SEPTEMBER 07, 2018 10:48 AM (EDT)
A.M. Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” of Lloyd’s Syndicate 2001 (Syndicate 2001) (United Kingdom), which is managed by MS Amlin Underwriting Limited. The outlook of these Credit Ratings (ratings) remains stable.

The ratings of Syndicate 2001 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.

Syndicate 2001’s capital is provided by MS Amlin Corporate Member Limited, the ultimate parent of which is MS&AD Insurance Group Holdings, Inc (MS&AD). MS&AD’s Lloyd’s Syndicate 3210 was merged into Syndicate 2001 for the 2017 year of account. For the 2018 year of account, the syndicate’s capacity was maintained at GBP 1,850 million.

The recent technical performance of the syndicate has been weaker than the overall Lloyd’s market, demonstrated by a five-year weighted average combined ratio of 107% (2013-2017), compared with Lloyd’s five-year weighted average combined ratio of 96%. In 2017, Syndicate 2001 recorded a combined ratio of 141%, affected by catastrophe losses in North America. The impact from catastrophe losses was broadly in line with A.M. Best’s expectations given the size and frequency of catastrophe events during the year. However, the syndicate’s performance was also affected by adverse loss reserve development and a higher-than-expected level of attritional losses. A.M. Best expects the syndicate’s prospective underwriting performance to improve over the medium term as a result of remedial portfolio actions.

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 2001 to compete under the Lloyd’s brand with international groups. Syndicate 2001 is one of the largest Lloyd’s syndicates, ranking second based on 2017 gross written premiums. It writes a portfolio of property/casualty, marine/aviation and 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.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.


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