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A.M. Best Revises Outlooks to Stable for Lloyd’s and Various Lloyd’s Syndicates

A.M. Best has revised the outlooks to stable from positiveand affirmed the financial strength rating (FSR) of A (Excellent) and theissuer credit ratings (ICR) of "a+" of (United Kingdom) andLloyd's Insurance Co. (China)Ltd. (LICCL) (China). Additionally, A.M. Best has revised theoutlook to stable from positive and affirmed the ICR of "a" ofSociety of Lloyd's (the Society) (United Kingdom) and the issue ratings of"a-" on the GBP 500 million 4.750% subordinated loan notes maturing30 October 2024, and the issue rating of "bbb+" on GBP 392,013,0007.421% junior perpetual subordinated loan notes redeemable 21 June 2017.

The rating affirmations reflect Lloyd's strong and stable risk-adjustedcapitalisation, excellent business profile and recent strong underwritingperformance. The revision of the outlooks to stable from positive reflects A.M.Best's view that an upgrade of the ratings in the short term is unlikely, owingto pressure on Lloyd's competitive position and prospective financialperformance in an increasingly difficult operating environment.

Lloyd's benefits from strong and stable risk-adjustedcapitalisation, supported by a robust risk-based approach to setting member levelcapital. The exposure of central resources to insolvent members has fallensignificantly over the past ten years and is now at a very low level. Lloyd'sfinancial flexibility continues to be good, enhanced by the diversity of itscapital providers, which include corporate and non-corporate investors.