Fitch reaffirms Lloyd's financial strength

Fitch Ratings has announced its reaffirmation of Lloyd's 'A+' rating, the Society of Lloyd's 'A' rating and Lloyd’s Reinsurance Company (China) A+ evaluations, reflecting the insurance market's strong operating performance during 2009, strong capital position and conservative allocation of assets.

The news comes two weeks after A.M. Best reaffirmed its assessment of Lloyd's.

Given the catastrophe activity in the early part of 2010 and a pricing and investment return environment that is less favourable than 2009, Fitch anticipates that Lloyd’s will report a reduced level of earnings in 2010. Despite this expectation, Fitch believes that Lloyd’s will remain profitable and continue to strengthen its financial profile going forward.

"Fitch's affirmation of the market rating highlights the ongoing strength and stability of Lloyd's," says Luke Savage, Director of Finance, Risk Management and Operations at Lloyd's. "It's pleasing to see that Lloyd’s sound capital position and the conservative allocation of assets have been regarded as positive rating factors."

In a further boost, Fitch believe the work of the Performance Management Directorate (PMD) will help to reduce the level of earnings volatility in the near-to-medium term. Evidencing this will put positive pressure on Lloyd's rating going forward.

Download the Fitch press release