Lloyd's of London
Moody’s rating agency views the Lloyd's of London’s modernisation plan as “credit positive” for its proposals to cut costs and increase its digital services. But it warned that delivery of the plan was subject to a “high degree of execution risk” as it required a major overhaul of the culture and huge investment.
Lloyd’s launched its strategic transformation plan on 1 May to much fanfare. Helena Kingsley-Tomkins, an AVP-Analyst at Moody’s, said: “Lloyd's proposed reforms include plans to radically reduce the cost of doing business and creating new digital platforms for placing insurance risk and streaming claims services, a credit positive. If the plan is successfully implemented, meaningful cost reductions will support profitability, which has declined since 2016. “However,” she added, “we believe the plan is subject to a high degree of execution risk because it will likely require substantial investment and significant cultural change.”
Moody, Lloyd's Ratings, analysis, digital services, London market