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FOR IMMEDIATE RELEASE
LONDON - JULY 12, 2019 09:51 AM (EDT)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of Lloyd’s Syndicate 2003 (Syndicate 2003) (United Kingdom), which is managed by Catlin Underwriting Agencies Limited. The outlook of these Credit Ratings (ratings) remains stable. Concurrently, AM Best has withdrawn the ratings as the syndicate has requested to no longer participate in AM Best’s interactive rating process.
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. The ratings of Syndicate 2003 reflect the balance sheet strength of the Lloyd’s market, which AM Best categorises as very strong, as well as the market’s strong operating performance, favourable business profile and appropriate enterprise risk management.
For the 2019 year of account, the syndicate’s capacity was at GBP 1,383 million. The syndicate’s capacity is provided by Catlin Syndicate Limited, a corporate member of Lloyd’s, the ultimate parent of which is AXA S.A.
The syndicate’s technical performance in recent years has been worse than that of the overall Lloyd’s market, reporting a five-year (2014-2018) weighted average combined ratio of 104.3%. In 2018, Syndicate 2003 recorded a combined ratio of 115.6%, affected by above-average catastrophe activity in North America, as well as adverse prior-year reserve development.
The business profile of all syndicates is linked inextricably 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 2003 to compete under the Lloyd’s brand with international groups. Syndicate 2003 is the largest syndicate at Lloyd’s, based on 2018 gross written premiums. It writes a diversified portfolio by geography and line of business comprising property, reinsurance, specialty and casualty business.
This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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