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FOR IMMEDIATE RELEASE
LONDON - JULY 12, 2019 10:41 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 2010 (Syndicate 2010) (United Kingdom), which is managed by Cathedral Underwriting Limited. The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn the ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings of Syndicate 2010 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. 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 2019 year of account, the syndicate’s capacity was maintained at GBP 306 million. Approximately 58% of Syndicate 2010’s capital is provided by Cathedral Capital (1998) Limited, a corporate member at Lloyd’s, the ultimate parent of which is Lancashire Holdings Limited. The remainder of the capital is provided by third-party Lloyd’s members.
The syndicate’s five-year (2014-2018) weighted average combined ratio of 94.8% is better than that of Lloyd’s, which is 99.8% for the same period. However, the syndicate’s performance is subject to considerably more volatility due to its exposure to large man-made and natural catastrophe perils, demonstrated by a combined ratio of 118% for 2018 (2017: 150.0%) compared with 104.5% (114.0%) for Lloyd’s.
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 2010 to compete under the Lloyd’s brand with international groups.
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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