S&P Assigns Lloyd’s Assessment Rating to Amlin’s Syndicate 2001

Standard & Poor’s Ratings Services announced that it has assigned its interactive Lloyd’s Syndicate Assessment (LSA) of ‘4’ (low dependency) to U.K.-based Amlin Underwriting – Syndicate 2001 with a stable outlook.

“The assessment reflects the syndicate’s very strong competitive position, track record of earnings outperformance, and superior operational management. However, the level of concentration of Syndicate 2001’s notional exposure to a small number of reinsurance counterparties represents a weakness for the assessment at its current level,” stated S&P credit analyst Peter Grant. “The syndicate is a core part of the Amlin group.”

The bulletin noted that for further information, see “Reinsurer Amlin Bermuda Ltd. Rated ‘A’; Holding Company Amlin PLC Rated ‘BBB+’; Outlook Stable,” published Dec. 22, 2005, on RatingsDirect, Standard & Poor’s Web-based credit analysis system. See also IJ Website Dec.16 for A.M. Best’s rating on Syndicate 2001.

S&P said the stable outlook reflects its “expectation that the syndicate’s proactive cycle management and strong competitive position will enable it to continue to outperform the Market going forward. We expect Amlin PLC (BBB+/Stable/–) to report a group combined ratio below 90 percent for 2005, which means that the syndicate’s performance will be broadly in line with that for 2004.

“This will represent a very strong level of performance for the year, particularly relative to its peers’. Should the formation of Amlin Bermuda Ltd. (Amlin Bermuda; A/Stable/–) enable the syndicate to further materially enhance its competitive position in the nonmarine segment, this could have a positive impact on the assessment.

“However, should the formation of Amlin Bermuda preface a material outflow of business from the syndicate, thereby unbalancing its portfolio, this could have negative consequences for the assessment.”

Topics Excess Surplus Lloyd's