Standard & Poor's lowers ratings of ten Lloyd's syndicates

Standard & Poor's Ratings Service lowered the ratings of 10 Lloyd's syndicates as part of its annual review of its Lloyd's Syndicate Assessments (LSAs), the company said. Two syndicates had their ratings upgraded.

Standard & Poor said the decision to lower ratings reflected "the poor operating performance of the Lloyd's Market" since 1997.

The company added that although forecasts suggested high profitability for this year, "the persistent period of poor profitability" continued to constrain assessments.

Standard & Poor's said the LSAs evaluated each syndicate's dependency on Lloyd's Central Fund, brand, international licensing agreements, and infrastructure. The LSAs also reflect Standard & Poor's insurer financial strength rating of Lloyd's, currently A.

Those syndicates to have their LSAs downgraded were:
· GoshawK Syndicate 102
· KGM Underwriting Agencies Syndicate 260
· R J Kiln & Co Syndicate 308
· Brit Syndicate 389
· Faraday Underwriting Syndicate 435
· Munich Re Underwriting Syndicate 457
· SVB Syndicate 1007
· XL London Market Syndicate 1209
· Catlin Underwriting Agencies Syndicate 2003
· ACE Underwriting Agencies Syndicate 2488

The two syndicates to have their ratings raised were Atrium Underwriters Syndicate 609 and Wellington Underwriting Agencies Syndicate 2020.