A.M. Besthas affirmed the financial strength ratings of A (Excellent) and the issuer credit ratings of “a+” of UK-based Markel International Insurance Co. Ltd.(MIICL) and Lloyd’s Syndicate 3000. The outlook for each of MIICL’s ratings remains stable and the outlook for each of Syndicate 3000’s ratings remains positive, in line with the outlook on the Lloyd’s market rating.
MIICL’s ultimate parent company is theMarkel Corp., which is also the parent company of Syndicate 3000’s managing agent, Markel Syndicate Management Ltd., and its capital provider, Markel Capital Ltd., said A.M. Best.
The ratings agency noted that MIICL and the syndicate account for approximately a quarter of the Markel group’s gross premium income and provide the group with access to the U.K. and London markets, as well as to international business.
“MIICL’s ratings reflect the continued support of Markel and the company’s strategic importance to the Markel group,” A.M. Best continued. “In addition, MIICL benefits from excellent stand-alone risk-adjusted capitalization, strong operating performance and good business profile as a specialist underwriter of marine, professional liability and specialty insurance in the U.K. and London markets.”
The ratings agency said MIICL has a strong historical underwriting record, demonstrated by a five-year (2011-2015) average combined ratio of 90 percent, despite the effects of high catastrophe losses in 2011. In 2015, MIICL reported a profit before tax and equalization reserve movement of US$85.7 million (2014: US$94.6 million).
The ratings of Lloyd’s Syndicate 3000 reflect the financial strength of Lloyd’s, which underpins the security of all Lloyd’s syndicates, A.M. Best said, adding that the syndicate’s financial flexibility is enhanced by the continued support of Markel.
With 2016 capacity of £500 million ($657.5 million), Syndicate 3000 remains Markel’s main underwriting center for marine, large U.S. and international property risks and specialty and financial lines written in the London market, A.M. Best explained.
Source: A.M. Best
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