Lloyd’s long-term issuer credit rating was changed to AA- (Superior) outlook stable from A+ (Excellent); outlook positive.
The upgrade of Lloyd’s rating reflects the strength of its balance sheet (which AM Best assessed as “very strong”) alongside its strong operating performance and risk management expertise.
Furthermore, the upgrade highlights Lloyd’s ability to attract and retain investors due to its efficient capital structure and its position as the leading underwriter of global specialty property and casualty risks.
In anticipation of Lloyd’s HY24 results on 5th September, AM Best aligns with Lloyd’s expectation that the market will continue to produce robust underwriting performance.
Burkhard Keese, Lloyd’s CFO, commented: “Today’s upgrade from AM Best follows that of S&P Global at the end of last year, with both agencies acknowledging the strength and resilience of Lloyd’s balance sheet, its strong operating performance and its position as the leading global specialty insurance and reinsurance market.
“Capital management continues to be Lloyd’s focus to ensure the attractiveness of the Lloyd’s market for our customers, participants, and investors. Our financial strength and solid capital platform enable us to deliver on our strategic growth ambitions and explore new and innovative solutions to enhance the fungibility of capital for our members. We were able to renew the central fund insurance early this year and are currently exploring a post-major market loss contingent capital solution for eligible members,” he added.
