Ratings maintained for Lloyd's, its subsidiaries, and the Society of Lloyd's by AM Best
AM Best Affirms Strong Ratings for Lloyd's and Society of Lloyd's
In a recent press release, global credit rating agency AM Best has affirmed the financial strength and credit ratings of Lloyd's, Lloyd's Insurance Company (China) Limited, Lloyd's Insurance Company S.A. (Lloyd's Europe), and the Society of Lloyd's (the Society).
Lloyd's and its subsidiaries have received a Financial Strength Rating of A+ (Superior) and Long-Term Issuer Credit Ratings (Long-Term ICR) of 'aa-' (Superior). The Society's Long-Term ICR has been affirmed at 'a+' (Excellent), with the GBP 300 million 4.875% subordinated notes rated at 'a' (Excellent). All these ratings have a stable outlook as of July 31, 2025.
The key factors contributing to these strong ratings include Lloyd's balance sheet strength, assessed as very strong by AM Best, supported by risk-adjusted capitalization at the strongest level measured by Best's Capital Adequacy Ratio (BCAR). Capital adequacy is supported by a robust risk-based approach to setting member-level capital and Lloyd's Central Fund.
Lloyd's demonstrates strong operating performance and a very favorable business profile. The company also demonstrates appropriate enterprise risk management practices. Lloyd's exhibits good financial flexibility, supported by the diversity of its capital providers, although AM Best considers some fungibility constraints on capital held at the member level.
The Society of Lloyd's has slightly lower but still strong credit ratings, reflecting its different structure from Lloyd's entities. The protection afforded to members through the Central Fund is enhanced by the Central Fund insurance, which was renewed for five years in 2024.
The ratings of Lloyd's China and Lloyd's Europe reflect reinsurance support from Lloyd's in the form of quota share contracts between Lloyd's and the syndicates that are active in its Chinese and European platforms.
AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. The press release was authored by Business Wire.
For more information, contact Tim Prince (Director of Analytics, [email protected], 44 20 7397 0320), Kanika Thukral (Associate Director of Analytics, [email protected], 44 20 7397 0327), Al Slavin (Senior Public Relations Specialist, [email protected], 1 908 882 2318), or Christopher Sharkey (Associate Director of Public Relations, [email protected], 1 908 882 2310). The copyright of the press release is held by A.M. Best Rating Services, Inc. and/or its affiliates. The press release can be sent via email through the Business Wire's "Send an email" feature.
In summary, Lloyd's and its rated subsidiaries enjoy superior financial strength and credit ratings due to strong capital adequacy, effective risk management, robust operating results, and solid balance sheet strength, underpinning their stable rating outlooks.
The strong ratings for Lloyd's and its subsidiaries by AM Best, including their exceptional 'aa-' Long-Term Issuer Credit Ratings and A+ Financial Strength Ratings, highlight the company's impressive performance and financial strength, often attributed to their robust risk management practices and capital adequacy. In a world where cloud-based solutions are increasingly relevant, the security and reliability that Lloyd's demonstrates how they seamlessly blend traditional business practices with modern performance standards in the finance industry. Furthermore, the Society of Lloyd's, while slightly lower in ratings due to its unique structure, still benefits from the protection afforded by the Central Fund and its renewed five-year insurance.
