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

23 Apr 2021

Lloyd’s, the world’s leading insurance and reinsurance marketplace, today 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 capitalisation, unique capital structure, conservative underwriting leverage, sound technical reserves, strong liquidity profile, diversified earnings sources, broad distribution channels and comprehensive risk management programme.

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 £33.9bn in 2020 and a central and market wide solvency ratios of 209% and 147% respectively*.

“We are delighted to appoint Kroll Bond Rating Agency and add an AA- stable outlook rating to sit alongside our financial strength ratings from our existing agencies. At Lloyd’s we highly value our ratings as they are vital indicators to our customers, our market, and our investors of our exceptional financial position. As shown in our 2020 full-year results, our capital and solvency positions are strong and resilient, which is reflected in our current ratings. “We believe it is important to have a diversity of views in the ratings market and welcome KBRA as a new entrant that will provide a fresh perspective on Lloyd’s.”

Burkhard Keese, CFO, Lloyd’s

Lloyd’s financial strength ratings are A+ (Strong) stable outlook with Standard & Poor’s, A (Excellent) stable outlook with A.M. Best, AA- (Very Strong) with Fitch Ratings, AA- (stable) with Kroll Bond Rating Agency (KBRA).

Notes to editors

*Lloyd’s 2020 full-year results report is available at: www.lloyds.com/annualresults2020

1. Kroll Bond Rating Agency press release
2. More news and information available from lloyds.com

Enquiries to:

pressoffice@lloyds.com

About Kroll Bond Rating Agency

Kroll Bond Rating Agency, LLC and its affiliates (KBRA) is a global full-service rating agency with a mission to set a standard of excellence and integrity. Established in 2010, KBRA remains dedicated to the restoration of trust in credit ratings by creating new standards for assessing risk and by offering timely and transparent ratings. KBRA provides market participants with an alternative solution by delivering in-depth research across various sectors within the United States and European markets. We strive to provide the investment community with the products and tools needed to make informed investment decisions.

Find out more about Kroll Bond Rating Agency

About Lloyd's

Lloyd’s is the world’s leading insurance and reinsurance marketplace. Through the collective intelligence and risk-sharing expertise of the market’s underwriters and brokers, Lloyd’s helps to create a braver world.

The Lloyd’s market provides the leadership and insight to anticipate and understand risk, and the knowledge to develop relevant, new and innovative forms of insurance for customers globally.

It offers the efficiencies of shared resources and services in a marketplace that covers and shares risks from more than 200 territories, in any industry, at any scale.

And it promises a trusted, enduring partnership built on the confidence that Lloyd’s protects what matters most: helping people, businesses and communities to recover in times of need.

Lloyd’s began with a few courageous entrepreneurs in a coffeeshop. Three centuries later, the Lloyd’s market continues that proud tradition, sharing risk in order to protect, build resilience and inspire courage everywhere.