Lloyd's in bid to reclaim "A+" rating

The future for Lloyd's has become decidely more positive since the announcement of the Equitas deal according to the latest "Lloyd's Update" report published by Benfield.

Lloyd's hopes that the transfer of Equitas' liabilities will serve as a catalyst for the reinstatement of the Standard and Poor's “A+” rating, and continues to work hard for this target. Rating drivers are a key consideration in the evolution of the Optimal Platform strategy and the 2007 Franchise Directorate planning process has formally incorporated measurement of their impact.

Capacity increased by over £1bn to £14.8bn in 2006. Since then a number of new syndicates have been formed including standalone ventures and sub-syndicates. 2007 market capacity has yet to be announced but indications from the Lloyd's listed vehicles coupled with the new syndicates suggest a figure close to £16bn. New ventures such as Thunderbird Re and Syncro Limited should also enhance capacity and proposals for the annual venture provide further scope.

“There has been much discussion about the merits of Bermuda relative to Lloyd's but augmentation of capacity through new ventures and new vehicles suggests that the London market is in good health,” observed Angela Coad from Benfield's industry analysis and research team. “Those who have re-domiciled are keen to stress that London is a key platform and Lloyd's is intent on ensuring that this continues to be the case.”Read also... Equitas deal gives Lloyd's clear competitive edge Budget tax plans may stem Lloyd's exits to tax havens Lloyd's needs to refocus on service, claims Ward