Amlin Bermuda and Syndicate 2001 both benefit from Best upgrades

AM Best has upgraded the financial strength rating to “A” (Excellent) from “A-” (Excellent) and the issuer credit rating to “a” from “a-” of Amlin Bermuda Limited (ABL).

The outlook for both ratings is stable.

The rating upgrades reflect ABL’s conservative implementation of its business plan and AM Best’s expectation that ABL will maintain strong risk-adjusted capitalisation.

In addition, the upgrades reflect the excellent performance of Lloyd’s Syndicate 2001 (which is managed by Amlin Underwriting Limited), as over 90% of ABL’s business comprises either reinsurance of syndicate 2001’s account or additional lines on existing business already written by the syndicate.

ABL’s prudent approach to underwriting and exposure monitoring supports the absence of a reinsurance programme in 2007-08. AM Best continues to believe that the spread of business written by the company in its target sectors effectively limits major loss exposures to a manageable level.

Meanwhile Best has also upgraded the Best’s Syndicate Rating to A+ (Superior) from A (Excellent) and the issuer credit rating to “aa-” from “a+” of Lloyd’s Syndicate 2001, which is managed by Amlin Underwriting Limited (AUL).

At the same time, AM Best has upgraded the ICR to “a-” from “bbb+” of Amlin, the non-operating holding company of the Amlin group of companies, and the debt ratings to “bbb+” from “bbb” on the fixed-to-floating rate subordinated notes issued by Amlin as follows: $50m due in 2019, $50m due in 2020 and £230m due in 2026. The outlook for all ratings is stable.

The rating upgrades reflect syndicate 2001’s consistent superior performance, its strong reserves and robust market profile derived from its well diversified account. AM Best believes that these factors are likely to continue to support the syndicate’s ratings and that Amlin’s strong risk management framework will benefit the syndicate as market conditions deteriorate.