Standard & Poor’s Ratings Services announced that its insurer financial strength rating and outlook on Lloyd’s (Lloyd’s or the Market; A+/Stable/–) “are unaffected by full-year results reported by the Market for the financial year ended Dec. 31, 2008.”
S&P reviewed Lloyd’s reported results (See IJ web site – https://www.insurancejournal.com/news/international/2009/03/24/98985.htm). The rating agency indicated that the results represent “a very solid performance in a year characterized by heavy catastrophe losses and extreme volatility in global financial markets.
“The headline combined ratio benefited from foreign exchange gains, a significant proportion of which can be expected to reverse, due to timing differences, during 2009. Excluding this effect, the calendar year combined ratio would have been 94.0 percent. “This comprises a combined ratio for the 2008 accident year of 103.2 percent (90.5 percent in 2007) offset by a 9.2 percent (6.5 percent in 2007) positive impact from the release of reserves held in respect of previous years.
“Lloyd’s also reported an investment return of 2.5 percent for the year, reflecting the high quality of its asset portfolio. Lloyd’s strong capital position has proven its resilience in a very challenging environment.”
S&P concluded that it “believes that this leaves the Market well placed to capitalize on the more favorable operating environment ahead.”
Source: Standard & Poor’s – www.standardandpoors.com
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