Lloyd’s has announced that ratings agency AM Best has revised its financial strength rating to A+ (superior) from A (excellent) and the long term issuer credit rating to ‘AA-’ (superior) outlook stable from ‘A+’ (excellent) outlook positive.

The organisation said the rating upgrade reflects Lloyd’s balance sheet strength — which AM Best assesses as “very strong” — as well as its strong operating performance, and risk management expertise.

It added that the upgrade further cites Lloyd’s ability to attract and retain investors due to its unique value proposition which offers a capital efficient structure, and the Lloyd’s market’s excellent position as the leading underwriter of global specialty property and casualty risks.

Looking ahead to Lloyd’s half-year 2024 results on September 5, AM Best shares Lloyd’s expectation that the market will continue to produce a strong underwriting performance.

Burkhard Keese, Lloyd’s chief financial officer, said: “Today’s upgrade from AM Best follows that of S&P Global at the end of last year, with both agencies acknowledging the strength and resilience of Lloyd’s balance sheet, its strong operating performance and its leading position as the global specialty insurance and reinsurance market.

“Capital management continues to be Lloyd’s focus to ensure the attractiveness of the Lloyd’s market for our customers, participants and investors.

“Our financial strength and solid capital platform enable us to deliver on our strategic growth ambitions and explore new and innovative solutions to enhance the fungibility of capital for our members.

“We were able to renew the central fund insurance early this year and are currently exploring a post major market loss contingent capital solution for eligible members.”