Britannia has a solid and long-standing position within the marine liability market, although recent technical results have underperformed our expectations. We expect its technical performance to improve in financial year 2022, though investment losses will likely impair results overall. Britannia's capitalization remains a key ratings strength and it enjoys the ability to boost its capital through supplementary calls. However, its capital base is relatively small in absolute terms compared to similarly rated insurers. The negative outlook reflects our view that we could lower our ratings by one notch in the next 12 months if Britannia is unable to sustain its competitive position by materially improving its combined ratio in FY2023 (year ending Feb. 20, 2023) and FY2024 and ultimately moving
