Ratings agency Fitch has affirmed Lloyd’s of London’s Insurer Financial Strength rating at A+.
In addition, the Society of Lloyd’s long term issuer default rating and Lloyd’s Reinsurance Company (China) were affirmed at A and A+ respectively. All three have stable outlooks.
According to Fitch, the affirmation “reflects Lloyd’s strong operating performance during 2009, with reported results ahead of Fitch’s expectations.”
Fitch claimed that Lloyd’s 2009 performance was supported by a series of beneficial factors that are unlikely to be repeated in 2010, including a benign US windstorm season, a recovery in investment results, favourable foreign exchange movements in respect of gross written premium growth and improved pricing conditions.
Mr Street, an associate director in Fitch’s insurance group,said: “A series of large losses that occurred in the first quarter of 2010 have worsened underwriting performance for both primary and reinsurance participants, including Lloyd’s.” He added: “When considered against other factors, including Fitch’s expectation of reduced investment returns and a pricing environment that is less favourable than that experienced during 2009, the agency anticipates that Lloyd’s will report a reduced level of earnings for 2010.”
