Lloyd's syndicate 1007 has matched its A-performance rating, received from Moody's last week, with an Aa3 (excellent) financial strength rating.
Syndicate 1212 was also given an A1 (good) financial strength rating. They are two of SVB Holdings' five syndicates; 1007 writes a non-marine liability-oriented book of speciality lines and 1212 writes the same with professional indemnity risks to the fore.
Moody's said the Aa3 rating reflected 1007's leading position within its core business areas and its mature and specialist book of business. The 1212 book is less mature but also a leader in its core areas. Its lower rating reflects the limited diversification and, given its relative youth and the long-tail nature of its liability business, the greater uncertainty of its real underwriting performance.
SVB provided 44% of 1007's year 2000 capacity and 60% for 1212. The Moody's report said: “Although more volatile than other lines, these classes of business also produce far better returns than commodity lines and, even though they've been affected by price competition in recent years and, in some cases, by catastrophe-related losses, syndicates 1007 and 1212 have continued to report underwriting profits.”