A.M. Best Co. announced that it has affirmed its Syndicate Rating of “A” (Excellent) of Lloyd’s Syndicate 3000, which is managed by Markel Syndicate Management Ltd. Best also affirmed the syndicate’s issuer credit rating of “a.” Both ratings have a stable outlook.
“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,” said Best. Best bases its syndicate ratings on specific syndicate criteria.
Best said it “believes the syndicate is likely to produce profits of between 20 percent and 25 percent on capacity (after personal expenses) when the 2002 and 2003 open years of accounts close, which is likely to place it in the upper quartile in the Lloyd’s market in terms of profitability. The syndicate is also likely to be profitable in 2004 as a result of disciplined underwriting and continued good rating levels despite some softening in its main classes of business, including professional/financial risks, property, marine and aviation.”
The rating agency indicated that gross premium will probably “decrease by 30 percent in 2004 as business is transferred to Markel International Insurance Company Ltd., a London market insurer, taking advantage of the company’s lower costs. In spite of this, A.M. Best believes that Markel will remain committed to the syndicate as its main marine and aviation underwriting operation.”
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