LONDON--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of Lloyd’s Syndicate 510 (United Kingdom), which is managed by Tokio Marine Kiln Syndicates Limited (TMKS). The outlook of these Credit Ratings (ratings) is stable.
The ratings of Syndicate 510 reflect the financial strength of Lloyd’s, which underpins the security of all Lloyd’s syndicates. In addition, the ratings factor in the syndicate’s track record of strong underwriting performance and its robust business profile. The syndicate benefits from its association with Tokio Marine Holdings, Inc. (Tokio Marine), which is the ultimate parent of TMKS and the syndicate’s main corporate member, Tokio Marine Underwriting Limited (TMUL). For the 2016 year of account, underwriting capacity is GBP 1,064 million, 55% of which is provided by TMUL. The remaining 45% is provided by third parties.
The syndicate has a track record of strong underwriting performance, as demonstrated by a five-year (2011–2015) average combined ratio of 90.1%. However, technical performance is subject to volatility, due to exposure to catastrophe risks. In 2015, on an annually accounted basis, the syndicate reported a strong pre-tax profit of GBP 111.3 million (2014: GBP 96.3 million), which benefited from benign catastrophe experience and the continuation of positive reserve development.
The syndicate’s strong presence in the Lloyd’s market is enhanced by its affiliation with the Tokio Marine and Kiln brands. These brands were more closely aligned in January 2014 by the formation of Tokio Marine Kiln Group Limited. The syndicate writes a diversified portfolio by territory and line of business, comprising property and special lines, marine and special risks, accident and health, reinsurance, enterprise risk and aviation.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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