Fitch affirms Lloyd's debt

Fitch Ratings said it affirmed the Society of Lloyd's long-term issuer default rating at A and Lloyd's of London's subordinated debt issues at BBB+.

The outlook is stable.

The affirmations reflect the strong financial profile of Lloyd's, which has demonstrated the ability to absorb what proved to be an unprecedented level of natural catastrophe losses sustained by the insurance industry during 2011, according to the agency.

The actions also reflect expectations that Lloyd's earnings will recover through 2012, driven by a marked improvement in the underwriting result, Fitch noted.

Lloyd's strong capital position and the conservative allocation of both several and mutual assets also are considerations, the agency said.

The historical volatility of Lloyd's results has been driven by its substantial exposure to catastrophe events, which has resulted in higher-than-industry-average losses in years of significant catastrophe activity, Fitch added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.