Market Overview

A.M. Best Affirms Credit Ratings of Lloyd's Syndicate 3000


A.M. Best has affirmed the Financial Strength Rating (FSR) of A
(Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of
"a+" of Lloyd's Syndicate 3000 (Syndicate 3000) (United Kingdom).
The outlook of these Credit Ratings (ratings) remains stable.

The ratings of Syndicate 3000 reflect the balance sheet strength of the Lloyd's
market, which A.M. Best categorises as very strong, as well as the
market's strong operating performance, favourable business profile and
appropriate enterprise risk management. The Lloyd's market rating is the
floor for all syndicate ratings, reflecting the Lloyd's chain of
security and, in particular, the role of the Central Fund, which
partially mutualises capital at the market level.

Markel Corporation (Markel) is the ultimate parent company of
Lloyd's Syndicate 3000's managing agent, Markel Syndicate Management
Limited, and of its corporate member, Markel Capital Limited. Syndicate
3000 is important to Markel as its main underwriting centre for marine,
large U.S. and international property risks and specialty and financial
lines written in the London market. For the 2018 year of account, Markel
maintained the syndicate's capacity at GBP 500 million.

The recent technical performance of the syndicate has been weaker than
the overall Lloyd's market, demonstrated by a five-year average combined
ratio of 102% (2013-2017), compared with Lloyd's market five-year
average combined ratio of 96%. In 2017, catastrophe losses added 16
points to the syndicate's combined ratio, which was in line with A.M.
Best's expectations given the size and frequency of catastrophe events
during the year. A.M. Best expects the syndicate's prospective
performance to benefit from remedial portfolio actions, including the
syndicate's decision to cease underwriting open market property business
written in London from the first quarter of 2018.

The business profile of all syndicates is inextricably linked to that of
Lloyd's, which has a strong position in the global general insurance and
reinsurance markets. The collective size of the Lloyd's market allows
Syndicate 3000 to compete under the Lloyd's brand with international
groups. In 2017, Syndicate 3000 ranked amongst the 20 largest Lloyd's
syndicates by gross written premium.

This press release relates to Credit Ratings that have been published
on A.M. Best's website. For all rating information relating to the
release and pertinent disclosures, including details of the office
responsible for issuing each of the individual ratings referenced in
this release, please see A.M. Best's
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases

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