Best's Market Segment Report: AM Best Revises Outlook on London Market Insurance Segment to Stable

AM Best is revising its market segment outlook on the London Market insurance segment to stable from positive.

In its new Best’s Market Segment Report, “Market Segment Outlook: London Market Insurance", AM Best notes that although the pricing environment for most business lines remains adequate and supportive of favourable underwriting profitability, it is showing signs of softening. At the same time, the report notes that changing climate trends and unmodelled risks present exposure management challenges to London Market participants and it acknowledges concerns regarding social inflation in certain business lines.

Nevertheless, positive momentum of U.S. excess and surplus (E&S) lines continues to offer opportunities, and the report adds that the higher interest rate environment compared with recent years is likely to support healthy investment yields. Both factors support the stable outlook.

Kanika Thukral, associate director, analytics, AM Best, and one of the report authors, said: “Overall, the London Market has remained an attractive insurance hub among global markets. In recent years, there has been an influx of new syndicates at Lloyd’s and growing deployment of third-party capital. London Market companies continue to demonstrate their underwriting expertise by developing new product concepts and providing bespoke coverages.”

To access a complimentary copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=352815.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250408230348/en/

Although the pricing environment for most insurance business lines remains adequate and supportive of favourable underwriting profitability, it is showing signs of softening.