Moody's Investors Service has confirmed the insurance financial strength rating of ACE syndicate 2488 as Aa3 (excellent). The rating outlook is stable.
The syndicate - the largest in the Lloyd's market - is the underwriting vehicle of ACE Global Markets (AGM), ACE Limited's Lloyd's operation.
Moody's initiated a review on the syndicate following the WTC events. The syndicate's current WTC loss estimate is $614m gross (£434m), $189m (£134m) after reinsurance recoveries - a signifcant amount in relation to its earnings and capital base.
However, Moody's noted that several factors helped mitigate concerns over the WTC losses.
In confirming the rating, the company also noted the explicit support from ACE subsidiary, ACE Bermuda Insurance Limited, itself rated Aa3 for insurance financial strength.
Finally, Moody's said the syndicate had a well-spread book of business and strong franchise, and good management controls. It expects the syndicate to continue to perform well.
