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Lloyd’s enjoys strong year: Aon

Lloyd’s is showing momentum after starting the year with record underwriting capacity and 93 active syndicates, according to Aon Benfield.

“One mid-year syndicate launch and three [merger and acquisition] transactions completed so far [this year] demonstrate the continued attractiveness of the Lloyd’s platform,” it says in a report.

“Lloyd’s balance sheet is strong, overall investment allocation remains relatively conservative, capital resources are at an all-time high and legacy issues appear contained.”

Aon Benfield notes Fitch upgraded its rating for Lloyd’s to AA- in June, while AM Best and Standard & Poor’s both maintain positive outlooks on their ratings for the market.

Total underwriting capacity at the start of the year was £26.4 billion ($47.6 billion). The 10 largest syndicates represent 41% of the market, with £10.8 billion ($19.5 billion).

Average syndicate capacity, excluding life and special-purpose syndicates, stands at £339 million ($612 million), according to Aon.

Inga Beale took over as Lloyd’s CEO at the start of the year, while the role of finance director has been split in two.

“New leadership has brought a fresh approach to the delivery of the Vision 2025 agenda, which focuses, among other things, on driving growth in developing markets,” Aon says.

The report says Lloyd’s has acknowledged the impact of alternative capital on the reinsurance market and is considering how best to access it to support indemnity-based products.