A.M. Best Affirms Ratings of Lloyd's Syndicate 2010

The ratings of syndicate 2010 reflect the financial strength of the Lloyd’s market, which underpins the security of all Lloyd’s syndicates. In addition, the ratings factor A.M. Best’s expectation that the syndicate will continue to report strong results, supported by its disciplined underwriting approach. The syndicate’s combined ratio is likely to remain strong at approximately 90%, subject to normal catastrophe experience in the remainder of the year. On a year of account basis, A.M. Best expects the syndicate to achieve good results for the open years 2007 and 2008, although the return for 2008 will be affected by losses relating to the year’s hurricanes.

Syndicate 2010 writes a specialist portfolio of non-marine reinsurance, direct and facultative property insurance and aviation reinsurance. Smaller accounts of contingency and satellite insurance are also written. The syndicate’s portfolio is relatively concentrated in terms of classes of business written and has significant exposure to catastrophe losses. A.M. Best believes the potential for volatile earnings that arises from these factors is mitigated by the syndicate’s extensive reinsurance programme. However, this leads to an offsetting rating factor, as the syndicate is highly dependent on the programme being placed each year.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Co.
Analysts:
Mathilde Jakobsen, +(44) 20 7626 6264
mathilde.jakobsen@ambest.com
or
Stephen Mullan, +(44) 20 7626 6264
stephen.mullan@ambest.com
or
Public Relations:
Jim Peavy, +1-908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, +1-908-439-2200, ext. 5378
rachelle.morrow@ambest.com