Gard Group

The stable outlook reflects our view that the club will retain its pre-eminent position in the P&I and marine sectors and maintain capital above our 'AAA' category over the next two years. We do not expect to lower the ratings in the next two years. However, we could do so if the group's risk-based capital adequacy falls consistently below our 'AAA' levels, or if operating performance materially deteriorates below our expectations during the next two years. This could result from Gard suffering substantial investment losses outside its risk tolerance. We do not anticipate raising the ratings during the next two years. Gard already enjoys an extremely strong financial risk profile, our highest assessment, and a stronger business risk profile would

...Bermuda-domiciled Gard will remain the dominant player in the P&I market and a significant participant in the marine market more widely. We expect that Gard will remain the largest player in the P&I sector with a market share of close to 18%. We expect that rate increases in the hull market will mean that this line of business grows so that it makes up around 25% of group revenues. Gard will maintain an excess of capital at our '###' benchmark. Gard holds a significant excess of capital over our '###' benchmark along with a regulatory solvency level of 282%. We expect that the club will reduce the level of capital surplus over the next two years, but still maintain a comfortable excess at the '###' benchmark. Like the majority of its peers, Gard remains largely undiversified outside of its marine specialism.Although Gard is more diversified than any of its P&I peers writing both hull and energy covers alongside its core P&I offering, it remains largely undiversified outside of its marine...

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