A.M. Best has given Lloyd’s syndicates 1003 and 2003—known as syndicate 1003/2003 (the syndicate)—a syndicate rating of “A.”
The ratings of syndicate 1003/2003 are based on excellent operating performance, strict management control of underwriting, capital flexibility, carefully managed growth and strong business profile in addition to the financial strength of the Lloyd’s market rating of “A-” (Excellent), which underpins the security of all Lloyd’s syndicates. The ratings are based on A.M. Best specific syndicate criteria. An offsetting factor is the challenge from the greatly increased business volume expected in 2002.
The two syndicates both are managed by Catlin Underwriting Agencies Ltd. (CUAL) and underwrite business at Lloyd’s in parallel. CUAL forms an integral part of the Catlin Westgen Group Ltd., a Bermudian holding company. Syndicate 1003 is supported by third-party capital providers outside the Catlin group, and syndicate 2003 is supported by the group’s own Lloyd’s corporate capital provider, Catlin Westgen Ltd.
Syndicate 1003/2003 has produced profits in every closed underwriting year since it began trading in 1985, and A.M. Best expects this profitability record to continue in each of the open years 2000 to 2002. The syndicate’s record has been based on excellent underwriting performance, conservative reserving and prudent use of reinsurance. Loss ratios have been low, there have been consistent releases from reserves and, since 1995, the syndicate has placed whole-account, stop-loss protection in addition to an extensive conventional reinsurance program.
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