The best and worst performers of the Lloyd’s of London market are laid bare in new rankings from Standard & Poor’s (S&P).
The rating agency said that bigger syndicates that pursued disciplined underwriting, dubbed “active cycle management”, had fared best in the tough conditions of declining re/insurance pricing.
“We were not surprised to find that the underperformers included new syndicates, which are typically burdened by high start-up expenses when they enter the Lloyd's market,” said S&P.
“The biggest syndicates, those with an allocated capacity of over $1 billion, all reported combined ratios below 100%
Syndicates reporting underwriting losses represented only about 12% of the Lloyd's market's overall 2015 allocated capacity of £26.1bn, noted S&P.
The number of syndicates reporting combined ratios above 100% rose to 22 (23%) from 17 (18%) in 2014.
“Of these, nine syndicates reported a combined ratio of over 115% (defined as a disastrous year) in 2015. The number of syndicates reporting a disastrous year rose by two from 2014,” said the rater.
“Although more recently the limited impact of catastrophes has helped, we believe that enhanced central oversight has also aided syndicates in avoiding disastrous years over the past decade,” added S&P.
The top and bottom ten rankings, by 2015 combined ratio, are below.
Source for both tables: Standard & Poor's Financial Services LLC.