Am Best has affirmed its A (excellent) rating of Lloyd's and dropped its negative outlook.

In June, the agency affirmed Lloyd's may be downgraded following the accelerating rate of asbestos-related claims, which could lead to a significant shortfall in Equitas's reserve.

Now it has removed the negative outlook as “Lloyd's is unlikely to be adversely affected by Equitas in the foreseeable future”.

Lloyd's chairman Sax Riley said: “The removal adds momentum to the market's continuing rise”.