A.M. Best Downgrades Rating of Lloyd's Syndicate 102.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--July 7, 2003 A.M. Best Co. has downgraded the Best's syndicate rating to A- (Excellent) from A (Excellent) of Lloyd's Syndicate 102, which is managed by Goshawk goshawk: see hawk. goshawk Any of the more powerful accipiters (hawks in the genus Accipiter), primarily short-winged, forest-dwelling bird catchers. Best known is the northern goshawk, which reaches about 2 ft (60 cm) in length with a 4.3-ft (1. Syndicate Management Limited. The outlook is stable. The rating reflects the financial strength of the Lloyd's market--currently rated A- (Excellent)--which underpins the security of all Lloyd's syndicates. The rating action reflects weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. operating performance as a result of deteriorating de·te·ri·o·rate v. de·te·ri·o·rat·ed, de·te·ri·o·rat·ing, de·te·ri·o·rates v.tr. To diminish or impair in quality, character, or value: loss experience in certain accounts. Partially offsetting this is an improving prospective risk profile. A.M. Best's syndicate ratings are based on specific syndicate criteria (see A.M. Best's Rating Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. Methodology for Lloyd's Syndicates at www.ambest.com). Weakened operating performance--The 2001 year of account is expected to return a loss of at least 10% on capacity, largely due to a number of significant loss events during the year but also including prior year deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in certain lines of business, particularly certain engineering contracts and participation in an aviation pool (now discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: ). Additionally, the syndicate has experienced deterioration in its cargo account, the need for reserve strengthening for contingent cost insurance (following a change in accounting treatment as advised by auditors) and has announced exposure to legal expenses losses from policyholders of The Accident Group. Nevertheless, A.M. Best anticipates that the forthcoming Syndicate Quarterly Return, to be filed with Lloyd's in August, will see the syndicate forecasting a return to profitability when the 2002 year of account closes, although at a level below A.M. Best's expectations. Improving prospective risk profile--The risk profile of the syndicate is improving due to the reduction in volatility resulting from the transfer of most of its 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 (in particular, property catastrophe) to Goshawk Reinsurance Limited, Bermuda--currently rated A- (Excellent). A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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