Best Affirms Lloyd's Syndicate 510 'Tokio Marine Kiln' Ratings

A.M. Best has affirmed the financial strength rating of ‘A’ (Excellent) and the issuer credit rating of “a+” of Lloyd’s Syndicate 510, which is managed by Tokio Marine Kiln Syndicates Limited (TMKS). The outlook for both ratings remains positive.

“The ratings and outlook of Syndicate 510 reflect the financial strength of Lloyd’s, which underpins the security of all Lloyd’s syndicates,” Best said. “In addition, the ratings factor in the syndicate’s track record of strong underwriting performance and its robust business profile.

In addition best explained that the syndicate “benefits from its association with Tokio Marine Holdings, Inc.” the ultimate parent of TMKS, and the syndicate’s main corporate member, Tokio Marine Underwriting Limited (TMUL). For the 2015 year of account, capacity is unchanged at £1.064 billion [$1.161 billion], 55 percent of which is provided by TMUL. The remaining 45 percent is provided by third parties.

“Syndicate 510 has a track record of strong underwriting performance, as demonstrated by a five-year average combined ratio of 90 percent (2010-2014,” best’s report said.

It added, however, that “technical performance is subject to volatility, due to exposure to catastrophe risks. In 2014, on an annually accounted basis, the syndicate reported an excellent pre-tax profit of £118 million [$178.7 million], compared to £119 million [$180.2 million] in 2013, “reflecting benign catastrophe experience and continuation of positive reserve development.”

Best described the syndicate’ business profile as “robust, with a strong presence in the Lloyd’s market. It also benefits from its affiliation with the Tokio Marine and Kiln brands, which were more closely aligned in January 2014 by the formation of Tokio Marine Kiln Group Limited.

“The syndicate writes a diversified portfolio by territory and line of business, comprising short-tail property and marine, political, aviation, accident and health and reinsurance risks.”

Source: A.M. Best