Lloyd's appoints new rating agency and receives AA- financial strength rating

26 April 2021 — Andrei Victor
Lloyd's announced that it has appointed Kroll Bond Rating Agency (KBRA) to provide an additional independent opinion of Lloyd's financial strength "and further demonstrate the market's exceptionally strong financial position to investors and customers".

KBRA has assigned an AA- insurance financial strength rating (IFSR) to Lloyd's with a stable outlook.

"The rating reflects Lloyd's sound risk-adjusted capitalization, unique capital structure, conservative underwriting leverage, sound technical reserves, strong liquidity profile, diversified earnings sources, broad distribution channels and comprehensive risk management program.

The new rating considers Lloyd's capital growth at a compound annual growth rate of 6.5% since end-2014 despite elevated catastrophe and attritional losses since 2016. Lloyd's maintains strong capital and solvency positions, with net resources increasing to GBP 33.9bn in 2020 and a central and market wide solvency ratios of 209% and 147% respectively".

Thus, currently Lloyd's financial strength ratings are:

(Strong) stable outlook with Standard & Poor's, 
A (Excellent) stable outlook with A.M. Best, 
AA- (Very Strong) with Fitch Ratings, 
AA- (strong) stable outlook with Kroll Bond Rating Agency (KBRA).

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