Fitch upgrades Lloyd’s to AA-

Rating agency Fitch Ratings has upgraded Lloyd's of London's (Lloyd's) financial strength and creditworthiness, as it expects the insurer to deliver stronger underwriting performance.

Fitch upgraded Lloyd’s’ insurer financial strength (IFS) to AA- from A+, and raised its long-term issuer default rating to A+ from A with a stable outlook.

“The upgrade reflects Fitch's expectation that Lloyd’s' future cross-cycle underwriting performance will be more favourable than that achieved by the Lloyd's Market historically, both in absolute terms and compared with peers.

“The upgrade is also supported by Lloyd's’ strong financial profile, including a level of Fitch risk-adjusted capitalisation that is in line with the new rating level, low financial leverage and a significant market position in both insurance and reinsurance classes,” said the rating agency.

A spokesperson for Lloyd’s said: "Lloyd’s welcomes Fitch’s Ratings upgrade to AA- as an endorsement of our progress and performance over recent years, and a reinforcement of Lloyd’s’ position as a leader in the world’s specialist insurance sector.

“Despite challenging conditions faced by the sector as a whole, this upgrade is down to significant improvements in Lloyd’s underwriting discipline, financial strength and risk management.”