S&P upgrades Lloyd’s, flags corrective underwriting actions

Lloyd’s of London has secured an upgrade from ratings agency Standard & Poor’s (S&P). Its financial strength rating has been changed to AA– outlook stable, from A+ outlook stable.  

S&P said the rating upgrade reflects the improvement in Lloyd’s balance sheet strength, which S&P has assessed to be ‘excellent’, as well as Lloyd’s very strong capital and solvency positions with profitability in both underwriting and investments, and strong premium growth evidenced in Lloyd’s 2023 Half Year Results published in September this year.  

In the update, S&P highlighted the corrective underwriting actions taken by Lloyd’s in recent years - focused on robust underwriting discipline through better oversight of syndicates - as a key reason for Lloyd’s improved performance. 

Burkhard Keese, Lloyd’s CFO, said: “This latest upgrade reinforces Lloyd’s financial strength and resilience, and is a welcome testament to the progress made in recent years to improve performance and strengthen Lloyd’s balance sheet. 

“Financial strength ratings are vital indicators to our customers, our market, and our investors. This upgrade provides a renewed optimism that we will continue on our positive financial trajectory and deliver a strong financial outlook for 2023.”