Moody's has affirmed the Aa3 insurance financial strength rating of Lloyd's Syndicate 2488, managed by Ace Underwriting Agencies. It said the outlook for the syndicate remained stable.
The affirmation follows the completion of its annual review of the syndicate's rating, said Moody's.
The Aa3 financial strength rating reflects the specific support, via reinsurance contracts, from Ace subsidiary Ace Bermuda Insurance, also rated Aa3, said the ratings agency.
Offsetting factors in the rating were the potential volatility in the syndicate's lines, demonstrated by its losses from the 11 September disaster, a high level of reinsurance recoverables and Ace's still elevated, but reducing, leverage profile relative to tangible capitalisation and associated debt servicing requirements.
Syndicate 2488 is a 100% Ace backed composite syndicate with a capacity of £550m for the 2004 year of account.
