Press Release|Insurance
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KBRA Affirms Ratings for Lloyd's of London and Lloyd's Insurance Company S.A.

10 Jun 2026   |   Dublin

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KBRA Europe (KBRA) affirms the AA- insurance financial strength ratings (IFSRs) of Lloyd’s of London and Lloyd’s Insurance Company S.A., collectively referred to as Lloyd’s. The Outlook for both ratings is Stable.

Key Rating Considerations

The ratings reflect Lloyd’s very strong global franchise as a leading specialty insurance and reinsurance marketplace, robust policyholder security supported by the Chain of Security and Central Fund framework, very strong capitalisation, sound liquidity, strong reserve position, and comprehensive market oversight and ERM framework. The ratings also reflect Lloyd’s demonstrated access to capital, including through London Bridge 2, and the unique credit support provided by the Society’s statutory and byelaw-based powers to levy member contributions. These strengths are partially offset by Lloyd’s structural exposure to catastrophe, geopolitical and systemic event risk, the increasing complexity of new entrants and capital structures, mark-to-market investment volatility, and execution risk associated with the Advance and Protect strategy, technology modernisation, operational resilience and data improvements.

Rating Sensitivities

Sustained through-the-cycle underwriting performance with combined ratios consistently meeting or exceeding Lloyd's stated ambition of below 95%, sustained strengthening of market-wide and central solvency buffers, evidence that the callable layer, Central Fund Insurance and broader capital-management tools remain credible and reliable under stress, continued successful execution of the Advance and Protect strategy, and/or improved operational resilience, including a demonstrable reduction in technology and data risk, enhanced oversight of complex new entrants and capital structures and continued strong access to diversified capital without weakening market discipline could result in positive rating action. On the other hand, sustained deterioration in underwriting performance, particularly material or persistent combined ratios worse than Lloyd’s stated ambition of below 95% through-the-cycle, material weakening of reserve adequacy, material decline in capital adequacy, failure of members to recapitalise following a major event, reduced availability or effectiveness of the callable layer, unexpected limitations in the Central Fund framework, Central Fund Insurance or other central capital resources, severe catastrophe, geopolitical, cyber, credit or market event that impairs earnings or capital, material reduction in liquidity or increase in volatility in the investment portfolio, and/or failure to execute Lloyd's strategy could result in negative rating action.

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

This credit rating is endorsed by Kroll Bond Rating Agency UK Limited for use in the UK. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA Europe

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Kroll Bond Rating Agency Europe Limited is located at 2nd Floor, One George’s Quay Plaza, George’s Quay, Dublin 2, D02 E440, Ireland.

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