A.M. Best has maintained the A- (excellent) financial strength rating of the Lloyd's market, it announced today.
This move comes despite Lloyd's recently announcing a 2001 loss of £3.11bn, on an annually-accounted basis.
The rating agency said that major factors in maintaining the rating were the market's continuing excellent financial strength, strong business profile, strengthened regulatory regime and prospective improvements in operating performance.
On the other hand, it noted Lloyd's poor recent performance, capital continuity disadvantages associated with the annual venture, the impact of losses arising from the World Trade Centre attacks and uncertainty over the ultimate adequacy of Equitas' reserves.
A.M. Best added that while the underlying performance of the market had deteriorated in the final quarter of 2001, it still remained within its expected range.
