Ratings service Moody's has placed the 'C' performance rating of Lloyd's syndicate 994 under review for possible downgrade.
The announcement stems from concern over uncertainty around its capital backing for 2003.
The syndicate, managed by Greenwich Managing Agency Ltd, reported losses of 26% for 1998 and 56% for 1999 and is now forecasting losses of 25% and 15% for 2000 and 2001 respectively.
The syndicate is currently reliant on Greenwich for its capital backing and Moody's expressed concern over the future of this arrangement.
A statement said: "Despite a mid-year pre-emption from GBP40m to GBP70m in 2002, and despite the official deadline for funds to be deposited at Lloyd's shortly due to expire, funds have yet to be put in place for 2003 underwriting."
In light of concerns over future capital backing, and with negotiations ongoing, the syndicate's C below average has been placed under review for possible downgrade.
