Lloyd’s represents the core of the London insurance market and constitutes the 4th largest global reinsurer. A.M. Best has been rating the Lloyd’s market since 1997 and recently affirmed its Financial Strength rating at A and its Issuer Credit Rating at a+, both with a positive outlook.
We are now issuing our Annual Lloyd’s Report for 2014 which provides the rationale for our rating opinion and detailed discussion of the market’s performance.The positive rating outlook reflects Lloyd’s strong operating performance in recent years and A.M. Best’s assessment of its robust oversight of the market and its demonstrable success in reducing earnings volatility.
The outlook also recognises the steady improvement in the market’s risk-adjusted capitalisation.
Offsetting these positive rating factors are the increasingly challenging conditions in Lloyd’s core markets, particularly for reinsurance business. A.M. Best will continue to monitor closely the impact of deteriorating rates, together with changes in terms and conditions, on Lloyd’s underwriting performance.
Dr Edem Kuenyehia