LONDON--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of “a+” of Lloyd’s Syndicate 2623, Lloyd’s Syndicate 623, Lloyd’s Syndicate 3623 and Lloyd’s Syndicate 3622 (United Kingdom). The outlook for all ratings remains positive.
The syndicates’ ratings reflect the financial strength of the Lloyd’s market, which underpins the security of all syndicates. In addition, syndicates 2623 and 623 benefit from very strong operating performance track records and strong positions in the Lloyd’s market. Syndicates 2623, 623, 3623 and 3622 are managed by Beazley Furlonge Limited. Syndicates 2623 and 623 underwrite business at Lloyd’s in parallel, with premiums for the 2015 year of account split 82% for syndicate 2623 and 18% for syndicate 623, in line with each syndicate’s share of overall combined capacity. The capital of syndicates 2623, 3623 and 3622 is provided by Beazley plc [LSE: BEZ], via its corporate member, while syndicate 623 is supported by third-party capital.
Syndicates 2623 and 623 have a record of very good and stable underwriting performance, as demonstrated by an average combined ratio of 88% (2009-2013). A very strong combined ratio in the 80s is expected to be reported for 2014. The syndicates have a strong business profile in the Lloyd’s market, with good leadership positions in key lines. A well-diversified portfolio is written with a large, well-reserved casualty account providing diversification for the syndicates’ closely managed catastrophe exposed lines.
Syndicate 3623 writes accident and health business, and reinsures the Beazley group’s U.S. admitted carrier, Beazley Insurance Company, Inc. Syndicate 3622 is a dedicated life syndicate writing life business associated with syndicate 3623’s accident and health policies. The performance of these two smaller syndicates has not matched that of the larger Beazley syndicates, due primarily to start-up expenses and poor results from Australian disability insurance.
A factor that may lead to positive or negative rating actions for the syndicates is a change in the rating of Lloyd’s, which currently carries the FSR of A (Excellent) and the ICR of “a+”, both with positive outlooks.
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. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilised:
• Rating Lloyd’s Syndicates
• Rating Members of Insurance Groups
• Risk Management and the Rating Process for Insurance Companies
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.
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