A.M. Best Affirms Ratings of Lloyd's Syndicate 33; Revises Outlook to Stable.OLDWICK, N.J. -- A.M. Best Co. has affirmed the Best's Syndicate Rating of A (Excellent) and the issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "a+" of Lloyd's Syndicate 33, which is managed by Hiscox Syndicates Limited. The outlook on both ratings has been revised to stable from positive, reflecting the stable outlook on the rating of Lloyd's of London Not to be confused with Lloyds Bank or Lloyd's Register.
Lloyd's of London is a British insurance market. It serves as a meeting place where multiple financial backers or “members”, whether individuals (traditionally known as . A.M. Best has also affirmed the ICRs of "bbb+" of Hiscox plc (United Kingdom), the group's UK holding company, and Hiscox Limited (Bermuda), the group's ultimate parent holding company. The outlook for these ratings remains stable.
In A.M. Best's opinion, support from Hiscox Limited enhances the syndicate's capital flexibility through its access to capital markets and credit facilities. In 2007, Hiscox Dedicated Corporate Member Limited (a wholly owned subsidiary Wholly Owned Subsidiary
A subsidiary whose parent company owns 100% of its common stock.
In other words, the parent company owns the company outright and there are no minority owners. of Hiscox Limited) provides 72.5% of the syndicate's funds at Lloyd's (FAL FAL FRAME (Fund for the Replacement of Animals in Medical Experiments) Alternatives Laboratory
FAL Bundesforschungsanstalt für Landwirtschaft (federal research institute for agriculture, Braunschweig, Germany) ) through a syndicated bank letter of credit for GBP GBP
In currencies, this is the abbreviation for the British Pound.
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 137.5 million (USD USD
In currencies, this is the abbreviation for the U.S. Dollar.
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 281 million) and assets held in trust of approximately GBP 117 million (USD 239 million). The balance of the syndicate's FAL requirement is met by its third party members.
A.M. Best believes that syndicate 33 is likely to produce a good return on capacity (after personal expenses) when the 2007 underwriting year is closed. In 2006, a return of between 15.0% and 22.5% is expected, in line with the syndicate's June 2007 forecasts.
In A.M. Best's opinion, syndicate 33 has an excellent profile. The syndicate is one of the largest in Lloyd's, with allocated capacity of GBP 875 million (USD 1,750 million) for 2007. This is supplemented by a qualifying quota share on the syndicate's property excess of loss reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. business with Panther Re Bermuda Ltd (Panther Re), a limited-life special purpose reinsurer re·in·sure
tr.v. re·in·sured, re·in·sur·ing, re·in·sures
To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. based in Bermuda. Panther Re will cease underwriting at year-end 2007. A.M. Best anticipates that some business previously ceded to Panther Re will be retained by the syndicate, with the remainder either ceded to other reinsurers or not renewed. The syndicate underwrites a well diversified account both by business class and territory and leads a significant proportion of the business it writes.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.