SRL Assigns Continuity Opinions to Lloyd’s Syndicates (Aegis, AmTrust, Antares, Argenta, Argo, Ariel, Ascot, Neon, Starr, Starstone, Travelers)

LONDON--()--SRL today assigned Continuity Opinions (SCOs) to the following Lloyd’s syndicates, reflecting SRL's view of relative performance and continuity prospects for the syndicates over the insurance cycle. SRL stated that following these actions SCOs have now been assigned to 74% of Lloyd’s market capacity and scorecard indicators to 94% of market capacity; research is issued on all trading syndicates.

Argo syndicate 1200 - B (Average)

Syndicate 1200’s (Argo Managing Agency Limited) cross-cycle annual returns on capital are in line with SRL’s B Average benchmarks. SRL considers that the syndicate is currently positioned towards the top of the B Average peer group. Outlook stable.

Aegis syndicate 1225 – A- (Good)

Syndicate 1225’s (Aegis Managing Agency Limited) cross-cycle annual returns on capital are in line with SRL’s A Very Good benchmarks. However, the current team have not yet demonstrated their performance through an insurance downcycle and benign loss experience has benefited cross-cycle results. Therefore, SRL positions the syndicate within the A-Good peer group. Outlook stable.

Antares syndicate 1274 – B (Average)

Syndicate 1274’s (Antares Managing Agency Limited) annual returns on capital are in line with SRL’s B Average benchmarks. With the syndicate material to the group but the current team not having demonstrated their performance through an insurance downcycle, SRL positions the syndicate towards the top of the B Average peer group. Outlook stable.

Starstone syndicate 1301 – B-^ (Below Average)

Enstar acquired the business in 2014, appointed a new underwriter and re-aligned the account. Syndicate 1301’s (Starstone Underwriting Limited) 5-year average annual returns on capital are in line with SRL’s B- Below Average benchmarks and the current team have not yet demonstrated their performance through an insurance downcycle. Despite improved results since the acquisition, SRL currently positions the syndicate within the B- Below Average peer group. Outlook stable.

Ascot syndicate 1414 – B+ (Above Average)

Syndicate 1414’s (Ascot Underwriting Limited) cross-cycle annual returns on capital are in line with SRL’s A- Very Good benchmarks. However, with 5-year average results in line with B+ Above Average benchmarks, the current team and book not having demonstrated their performance through an insurance downcycle and potential integration risks related to the acquisition of the business by CPPIB, SRL considers that the syndicate is positioned towards the top of the B+ Above Average peer group. Outlook stable.

Ariel syndicate 1910 – B (Average)

Syndicate 1910’s (Asta Managing Agency Limited) cross-cycle annual returns on capital are in line with SRL’s B+ Above Average benchmarks. However, there have been significant changes in the team in recent years and a changing account. There are also potential integration risks related to the proposed acquisition of the business by Argo International, while the performance of the current team and book has not been demonstrated through an insurance downcycle. SRL therefore currently positions the syndicate towards the top of the B Average peer group. Outlook stable.

Starr syndicate 1919 - B (Average)

Syndicate 1919’s (Starr Managing Agents Limited) more recent 5-year average returns on capital are in line with SRL’s B Average benchmarks. SRL considers that the syndicate is positioned within the B Average peer group. Outlook stable.

Argenta syndicate 2121 – B^ (Average)

Syndicate 2121’s (Argenta Syndicate Management Limited) cross-cycle annual returns on capital are in line with SRL’s borderline B+ Above Average / B Average benchmarks. However, more recent 5-year average returns are in line with B Average benchmarks and the current team have not demonstrated their performance through an insurance downcycle. In addition, with the managing agency’s owner currently in discussions with potential investors, integration risks may affect continuity. SRL therefore positions the syndicate within the B Average peer group. Outlook stable.

Neon syndicate 2468 – B-^ (Below Average)

Syndicate 2468’s (Neon Underwriting Limited) 5-year average annual returns on capital are in line with SRL’s C Below Average benchmarks. However, American Financial Group have demonstrated their commitment to the business by re-capitalising the syndicate and appointing a new management team for 2016. SRL therefore considers that the syndicate is currently positioned within the B- Below Average peer group. Outlook stable.

Travelers syndicate 5000 – B+^ (Above Average)

With syndicate 5000’s (Travelers Syndicate Management Limited) cross-cycle annual returns on capital in line with SRL’s B+ Above Average benchmarks and with the support of The Travelers Companies Inc, SRL considers that the syndicate is positioned within the B+ Above Average peer group. Outlook stable.

AmTrust syndicate 5820 – B-^ (Below Average)

Syndicate 5820’s (AmTrust Syndicates Limited) 5-year average annual returns on capital are in line with SRL’s B- Below Average benchmarks. There is also the potential for integration risks to affect continuity following AmTrust’s recent acquisition of ANV Holdings Limited. SRL therefore currently positions the syndicate within the B- Below Average peer group. Outlook stable.

SRL provides independent research on all active syndicates trading at Lloyd’s. SRL’s Continuity Opinions are opinions on individual Lloyd’s syndicates’ relative, potential continuity prospects for policyholders. SRL took on the rights to the Continuity Opinions previously offered under Moody’s Analytics Lloyd’s Market service in October 2014.

More information available at www.syndicateresearch.com . Continuity Opinion definitions available at www.syndicateresearch.com/explanatory-notes/ .

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