Lloyd’s of London’s financial strength rating has been upgraded by AM Best.
The ratings agency revised the marketplace’s score to A+ (superior) from A (excellent) and the long-term issuer credit rating to AA- (superior) outlook stable from ‘A+’ (excellent) outlook positive.
This came after fellow ratings firm Standard & Poor (S&P) improved Lloyd’s financial strength rating to AA– from A+ in December 2023.
The upgrade from AM Best came as a result of the firm assessing Lloyd’s balance sheet as “very strong”.
Lloyd’s said the upgrade also reflected its operating performance and risk management expertise.
Growth
Burkhard Keese, Lloyd’s chief financial officer, said: “[The] upgrade from AM Best follows that of S&P Global at the end of last year, with both agencies acknowledging the strength and resilience of Lloyd’s balance sheet, its strong operating performance and its position as the leading global specialty insurance and reinsurance market.
“Capital management continues to be Lloyd’s focus to ensure the attractiveness of the Lloyd’s market for our customers, participants and investors.
“Our financial strength and solid capital platform enable us to deliver on our strategic growth ambitions and explore new and innovative solutions to enhance the fungibility of capital for our members.
“We were able to renew the central fund insurance early this year and are currently exploring a post major market loss contingent capital solution for eligible members.”