S&P downgrades London Club outlook

London Club has seen S&P downgrade its outlook from BBB stable to BBB negative. The rating agency said that it considered the Club’s capital adequacy, at the AA level under the S&P model, was at risk because of expectations of losses over the financial year 2022-23. This would be due to weak investment results and adverse prior-year underwriting developments in the mutual business.

S&P said that it considered the Club more likely to maintain a comfortable capital surplus at just below the AA level in 2023 and that it could recover to a sustainable position at the AA threshold in 2024.