Moody's upgrades Syndicate 1176 from "B+" to "A-"
Moody's has upgraded the “B+” above average performance rating of Lloyd's nuclear syndicate 1176 (Chaucer Syndicates Limited) to “A-” Good.
The rating agency said that the upgrade, which followed the completion of a review of the syndicate's rating, reflected the syndicate's continued out-performance in recent years and the potential for future returns to be at least consistent with an “A-” (Good) performance rating.
The outlook for the rating is stable.
Syndicate 1176 is managed by Chaucer Syndicates Limited, whose ultimate
holding company is UK Stock Exchange listed, Chaucer Holdings.
For 2007 Chaucer's economic interest is 50% of syndicate 1176.
The syndicate has, in the absence of a nuclear disaster or reserving issues, consistently produced large profits with a 9 year average profit to 2004 of 32% of capacity, materially outperforming the market average.
The agency is currently forecasting a profit in the range of 20% to 30% for 2005 and a profit of 27.5% to 47.5% of capacity for 2006. For 2006 the syndicate reported an excellent annually accounted profit of £11m,
70% (2005 17%) of net premium earned, and a combined ratio of 40% (85%).
