A.M. Best has affirmed the financial strength ratings of “A (Excellent)” and the issuer credit ratings of “a+” of Markel International Insurance Company Limited (MIICL) and Lloyd’s Syndicate 3000, both based in the UK.
The outlook for MIICL’s ratings remains stable and the outlook for Syndicate 3000’s ratings remains positive.
MIICL’s ultimate parent company is the Markel Corporation, which is also the ultimate parent company of Syndicate 3000’s managing agent, Markel Syndicate Management, and its capital provider, Markel Capital.
The syndicate and MIICL account for around a quarter of the Markel group’s gross premium income and provide the group with access to the UK and London markets as well as to international business.
According to A.M. Best, MIICL’s ratings reflect the continued support of Markel and the company’s strategic importance to the Markel group.
In addition, MIICL benefits from excellent stand-alone risk-adjusted capitalisation, strong operating performance and good business profile as a specialist underwriter of marine, professional liability and specialty insurance in the UK and London markets.
MIICL has a strong historical underwriting record, and from 2010 until 2014 achieved a five-year average combined ratio of 88 percent, despite the impact of exceptionally high catastrophe losses in 2011.
In 2014, MIICL reported a profit before tax and equalisation reserve movement of $95.7 million. MIICL underwrites what A.M Best has called a “well-diversified” portfolio and leads over 60 percent of its business.
The ratings of Lloyd’s Syndicate 3000 reflect the financial strength of Lloyd’s, which underpins the security of all Lloyd’s syndicates.
A.M. Best has stated that the syndicate’s financial flexibility is enhanced by the continued support of Markel. The syndicate’s capacity for the 2014 year of account was maintained at £500 million.
This is consistent with the prior year and demonstrates Markel’s continued commitment to Syndicate 3000 as its main underwriting centre for marine and large US property risks written in the London market.
A.M Best commented: “Positive or negative movements in the ratings of Markel group would likely lead to corresponding actions for MIICL.”
“In addition, a deterioration in stand-alone risk adjusted capitalisation or a reduction in the importance of MIICL in the overall group could lead to negative pressure on the company’s ratings.
A factor that may lead to positive or negative rating actions for Syndicate 3000 is a change in the rating of the Lloyd’s market, which currently has an financial strength rating of “A (Excellent)” and an issuer credit rating of “a+”, both with a positive outlook.
