A.M. Best Co. announced that it has affirmed its Syndicate Rating of “A” (Excellent) and the issuer credit rating (ICR) of “a+” of Lloyd’s Syndicate 382, which is managed by the U.K.’s Hardy (Underwriting Agencies) Ltd. The outlook remains stable.
“The ICR of syndicate 382 reflects A.M. Best’s opinion, expressed in the credit market scale, as to the overall ability of the syndicate to meet its senior most obligations, which are insurance policies; hence both ratings (financial strength and ICR) are at the same level,” said the announcement.
Best noted that “the syndicate benefits from the financial strength of the Lloyd’s market—currently rated ‘A’ (Excellent)—which underpins the security of all Lloyd’s syndicates. The rating is based on A.M. Best’s specific syndicate criteria. (See A.M. Best’s Rating Methodology for Lloyd’s Syndicates at http://www.ambest.com.)”
Best indicated that it “believes syndicate 382 is likely to record excellent profits when the 2002 and 2003 open years of account are closed (16 percent and 9.5 percent on capacity, respectively [June 2004 Quarterly Monitoring Report]). The syndicate is likely to continue to be profitable in 2004 as a result of disciplined underwriting and continued good rates for its cargo, financial institutions and specialist aviation business, despite some softening. Syndicate 382 has a long record of strong underwriting performance, having consistently outperformed the Lloyd’s market over the last 25 years. It is a niche underwriter with an excellent market profile for the short-tail classes in which it specializes, particularly for aviation rotor wing business.
“The syndicate is exposed to the risks associated with writing new classes of business as a result of commencing underwriting financial institutions and political risks in 2004. The syndicate has reduced this risk through comprehensive research prior to accepting business and prudent reinsurance purchasing.”
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