S&P Global Ratings has upgraded the financial strength rating of insurance marketplace Lloyd’s from ‘A+’ to ‘AA-’ with stable outlook.

In a release, the ratings agency said: “We believe the Society of Lloyd’s will sustainably maintain its strong performance in line with ‘AA-’ rated peers.

“This is supported by corrective underwriting actions in recent years, focussed on enhancement of underwriting discipline through better oversight of syndicates, which we believe will help Lloyd’s sustain its improved performance.”

It is S&P’s expectation that underwriting discipline performance will remain in place while the Lloyd’s leadership continues to execute its expense reduction strategy. Lloyd’s is also expected to maintain its capitalisation at an “excellent” level.

Additionally, the ratings agency sees the Lloyd’s programmes on digitalisation and simplifying claims handling as having been “more successful than previous attempts” to modernise. 

Commenting on the upgrade, Lloyd’s chief financial officer Burkhard Keese said: “This latest upgrade reinforces Lloyd’s financial strength and resilience, and is a welcome testament to the progress made in recent years to improve performance and strengthen Lloyd’s balance sheet.

“Financial strength ratings are vital indicators to our customers, our market, and our investors. This upgrade provides a renewed optimism that we will continue on our positive financial trajectory and deliver a strong financial outlook.” 

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