Lloyd’s Still on ‘Watch Negative’
S&P announced that its “A” insurer financial strength rating on the Lloyd’s insurance market will remain on CreditWatch with negative implications, but expects the placement to be resolved by the end of April 2002.
Due to losses arising from the terrorist attacks on Sept. 11, 2001, along with cash calls and the preliminary estimates for Lloyd’s Central Fund drawdowns, or payments, uncertainty remains as to the ultimate impact of open-year losses on Lloyd’s.
Concerned with the effects the drawdowns from Central Fund, which assures claims payments when an individual underwriting syndicate is unable to do so, will have on Lloyd’s overall financial condition, S&P stressed there were too many unknown factors to remove the market from CreditWatch.
