Syndicates rated C+ and C by Argenta Private Capital plan for new business to account to 40.9% of their 2027 premium income, compared with 15.7% for A-rated syndicates, according to a review published on November 2. The report noted that planned combined ratios for 2027 are the weakest since 2019 amidst falling prices and narrowing profit margins across the market, following a 6.7% drop in Lloyd's risk-adjusted rates in the first half of the year.
Why it matters
Brokers placing business at Lloyd's should scrutinise whether aggressive pricing and growth targets from lower-rated syndicates align with long-term capacity stability.
Jargon, explained
syndicate
At Lloyd's, a group of members whose capital backs insurance risks, operated by a managing agent.
combined ratio
An insurer's claims and relevant expenses as a percentage of earned premiums. Below 100% generally means an underwriting profit.
Original source
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