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 33 (Syndicate 33) (United Kingdom), which is managed by Hiscox Syndicates Ltd. The outlook of these Credit Ratings (ratings) remains stable.
The ratings of Syndicate 33 reflect the balance sheet strength of the Lloyd’s market, which A.M. Best categorises as very strong, as well as the market’s strong operating performance, favourable business profile and appropriate enterprise risk management.
The Lloyd’s market rating is the floor for all syndicate ratings, reflecting the Lloyd’s chain of security and, in particular, the role of the Central Fund, which partially mutualises capital at the market level.
For the 2018 year of account, the syndicate’s capacity increased to GBP 1,600 million (2017: GBP 1,147). Approximately 73% of Syndicate 33’s capital is provided by Hiscox Dedicated Corporate Member Ltd, the ultimate parent of which is Hiscox Ltd. The remainder of the capital is provided by third-party Lloyd’s members.
The recent technical performance of the syndicate has been stronger than that of the overall Lloyd’s market, demonstrated by a five-year weighted average combined ratio of 85% (2013-2017), compared with Lloyd’s five-year weighted average combined ratio of 96%. In 2017, Syndicate 33 recorded a combined ratio of 103% (Lloyd’s: 114%), affected by catastrophe losses in North America. The impact from catastrophe losses was in line with A.M. Best’s expectations given the size and frequency of catastrophe events during the year.
The business profile of all syndicates is inextricably linked to that of Lloyd’s, which has a strong position in the global general insurance and reinsurance markets. The collective size of the Lloyd’s market allows Syndicate 33 to compete under the Lloyd’s brand with international groups. Syndicate 33 is one of the largest Lloyd’s syndicates, based on 2017 gross written premiums. It writes a diversified portfolio by geography and line of business comprising reinsurance, property, aerospace, specialty and casualty business.
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