A.M. Best Affirms Ratings of Lloyd’s Syndicate 510
Business Wire, Inc. |
The syndicate’s ratings reflect the financial strength of the Lloyd’s market, which underpins the security of all Lloyd’s syndicates. In addition, syndicate 510 benefits from the financial flexibility provided by Tokio Marine Holdings, Inc. (Tokio Marine), the ultimate parent company of
On an annually accounted basis, syndicate 510 is expected to report a solid pre-tax profit in 2012, a significant improvement on the loss of <money>GBP 15.6 million reported for 2011. A combined ratio of approximately 90% is expected (2011: 102.6%), subject to normal catastrophe activity in the remainder of the year. Investment income from the syndicate’s conservative investment portfolio is likely to be modest due to low interest rates.
On a traditional underwriting year of account basis, the 2010 year of account is expected to breakeven. The result will be adversely affected by losses from catastrophic events during 2010, including the earthquakes in
Syndicate 510 has a strong business profile within the Lloyd’s market and leads approximately 55% of its business by premium volume. It writes a diversified account by territory and line of business, comprising short-tail property and marine, political, aviation, accident and health and reinsurance risks. The wide geographical spread of the account is supported by R.J. Kiln’s strategy of developing long-term relationships with coverholders. For the 2012 year of account, Lloyd’s Syndicate 807, which is also managed by R.J. Kiln, has been merged with syndicate 510. Syndicate 807 remains responsible for the ongoing service of risks written into the 2011 and prior years of account. Growth in 2012 is expected to be driven by the merger of syndicate 807, which is expected to provide the syndicate with a larger share of existing risks, as well as rate increases in loss affected classes and other classes where market conditions are favourable.
A factor that may lead to positive or negative rating actions for syndicate 510 is a change in the ratings of the Lloyd’s market.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilised include: “Rating Lloyd’s Syndicates” and “Rating Members of Insurance Groups”. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best
A.M. Best
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.
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Copyright: | Copyright Business Wire 2012 |
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