Standard & Poor's (S&P)has launched a new tool for analyzing the syndicates operating in the Lloyd's Market.
Lloyd's Syndicate Assessments (LSAs) are S&P's view of the dependency of individual Lloyd's syndicates on Lloyd's central fund, brand, international licensing agreements, and
infrastructure.
Standard & Poor's credit analyst Kevin Willis said: "The market has been calling for greater clarity in response to changes in the structure of Lloyd's in recent years.
"LSAs address this need, with the assessments reflecting the diversity of syndicates within the Lloyd's market."
S&P have stressed that its single-'A' (strong) financial strength rating on Lloyd's remains the principal measure of
financial strength applied to all Lloyd's syndicates.
In determining an LSA, Standard & Poor's considers six analytical categories: business position; operating performance; capital and ownership; outward reinsurance; reserves; and investments and liquidity.
In total, 22 qualitative and quantitative factors are analyzed, with each factor carrying a fixed weighting depending on its relative importance. A score is assigned for each factor and an overall score is then derived for each syndicate.
