Lloyd’s of London and Lloyd’s Insurance Company S.A. Surveillance Report
Rating Summary
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.
Outlook
The Stable Outlook reflects KBRA’s expectation that…
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