Rating agency Fitch has affirmed its 'A minus' insurer financial strength (IFS) rating for Lloyd's.
At the same time it has shifted its rating outlook for the insurance market to stable from negative.
Fitch welcomed the support shown by capital providers since 2002, which has led to Lloyd's capacity rising to £14.4bn for 2003.
A Fitch spokesman said: "To date, Lloyd's central resources have withstood the losses of 1997 to 2001. Fitch estimates the central fund will increase to $1bn by year-end 2003."
Despite the positive assessment, Fitch warned that it would monitor the forthcoming arbitration on the central fund. Fitch warned that at worst Lloyd's could expect a hit of £290m on its accounts.
