AM Best withdraws credit ratings of AEGIS Lloyd’s Syndicate 1225
Rating agency AM Best has withdrawn its ratings of Lloyd’s Syndicate 1225, which is managed by AEGIS Managing Agency, at the firm's request.
The action follows its management's request to no longer participate in AM Best’s credit rating process, according to the statement.
In 2017, Syndicate 1225’s underwriting performance was affected negatively by claims from catastrophe events in North America, resulting in a combined ratio of 99 percent for the year. Accordingly, the net profit decreased to £4.4 million from £56 million in 2016. AM Best said Syndicate 1225’s overall performance has been in line with its expectations.
In February 2018, mutual insurance company AEGIS announced that it is expanding the stamp capacity for Syndicate 1225 by 21 percent year on year to £400 million in 2018.
The rating agency said that a final rating opinion for Syndicate 1225 was not produced as the request to withdraw the ratings preempted AM Best’s assessment of the individual building blocks that underpin the ratings of the Lloyd’s market as per the substantially revised Best’s Credit Rating Methodology, which took effect on Oct. 13, 2017.
However, AM Best notes that the financial strength of the Lloyd’s market underpins the financial strength of all individual Lloyd’s syndicates. Currently, the Lloyd’s market has an FSR of A (Excellent) and a Long-Term ICR of a+. It noted the ratings of the Lloyd’s market act as a floor for the ratings of all individual Lloyd’s syndicates.
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