A.M. Best Affirms Ratings of Lloyd’s Syndicate 2001, Amlin AG and Amlin plc
By Christine LaBelle | |
A.M. Best Company, Inc. |
A.M. Best Europe –
Following its change of domicile to
The financial strength of both
Amlin AG’s stand-alone risk-adjusted capitalisation remains excellent despite significant dividend payments to its parent in 2009, 2010 and 2011. Furthermore, as
On an annual accounting basis, the syndicate reported a profit of
On a three-year funded basis, the syndicate has consistently produced superior underwriting results with a positive return on capacity every year since 2001. The 2008 year of account closed with a return on capacity of 21.5%, despite exposure to hurricanes Gustav and Ike, and this profitable record is expected to be maintained in 2009, albeit at a more modest level given the impact on the year of losses from the Chilean earthquake in early 2010. The 2010 and 2011 years of account, however, are likely to close with losses as a result of the series of predominantly non-U.S. natural catastrophes, to which the syndicate is particularly exposed, that occurred in those years. The underwriting returns are likely to be offset in part by releases from prior years’ reserves and by investment income. The syndicate maintains a prudent level of reserves and has a history of reserve releases since 1998.
In 2010,
As one of the largest syndicates in Lloyd’s, syndicate 2001 has an excellent market profile and writes the majority of its business from a lead position.
Although
The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilised include: “Rating Lloyd’s Syndicates”; “Rating Members of Insurance Groups”; “Risk Management and the Rating Process for Insurance Companies”; “A.M. Best’s Ratings and the Treatment of Debt”; “Rating New Company Formations”; “Understanding BCAR for Property/Casualty Insurers”; and “Understanding Universal BCAR”. Methodologies can be found at http://www.ambest.com/ratings/methodology.
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: http://www.ambest.co.uk/AMBERSDisclosure.pdf.
A.M. Best Europe –
Copyright: | (c) 2011 A.M. Best Company, Inc. |
Wordcount: | 1111 |
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News