Fitch upgrades Lloyds, debt

Fitch Ratings said it upgraded Lloyd's of London's insurer financial strength rating to AA- from A+.

The agency also upgraded the Society of Lloyds' long-term issuer default rating to A+ from A and Lloyd's Insurance Co. (China) Ltd.'s insurer financial strength rating to AA- from A+.

Fitch additionally upgraded Lloyd's subordinated debt issues to A- from BBB+.

The outlook is stable.

The upgrade reflects the agency’s expectation that Lloyds' future cross-cycle underwriting performance will be more favorable than that achieved by the Lloyd's market historically, both in absolute terms and compared with peers. The upgrade is also supported by Lloyd's strong financial profile, including a level of Fitch risk-adjusted capitalization that is in line with the new rating level, low financial leverage and a significant market position in both insurance and reinsurance classes, Fitch said.

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