Standard & Poor's Ratings Services has announced the results of its latest Lloyd's Syndicate Assessment (LSA) review.
Standard & Poor's credit analyst Peter Grant, said: "Following two years of positive movements in the assessments, the 2006 review has seen mixed results reflecting increased earnings volatility and capital strain for those syndicates writing significant amounts of catastrophe exposed business and generally strong results elsewhere."
At review, Atrium Underwriters – Syndicate 0609 was lowered to 3pi from 4pi; Liberty Syndicate Management – Syndicate 4472, was lowered to 2pi from 3pi.
Marketform Managing Agency – Syndicate 2468, was raised to 2pi from 1pi; and Abacus – Syndicate 2525, was raised to 2pi from 1pi
Grant added: "The extremely testing conditions caused by the higher frequency and severity of the natural catastrophe losses have resulted in substantial losses and capital strain at the hardest hit syndicates.
"Despite the earnings volatility, Standard & Poor's does recognize the increased robustness of syndicates since 2001, and notes that no syndicates ceased trading as a result of the losses incurred in 2005."
