Rating agency AM Best has revised its outlook on Lloyd’s (UK) to positive from stable. It has also affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent).

In addition, AM Best said it had revised the outlooks to positive from stable and affirmed the Long-Term ICR of “a” (Excellent) of Society of Lloyd’s (the Society) (United Kingdom) and the Long-Term Issue Credit Ratings of “a-” (Excellent) on the £306m 4.750% subordinated loan notes maturing 30 October 2024, as well as on the £300m 4.875% subordinated notes maturing 7 February 2047.

In a statement, AM Best said: “These Credit Ratings (ratings) reflect Lloyd’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.

“The positive outlooks reflect, in part, actions taken over a number of years to improve the resilience of Lloyd’s balance sheet. This includes the introduction of the Lloyd’s Central Fund insurance, increase in the callable layer and limits put in place to reduce excessive risk taking by individual syndicates.”

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