Lloyd’s operating performance remains strong despite starting the year with reduced underwriting capacity and 92 active syndicates, one less than last year, according to Aon Benfield.

“Buying a Lloyd’s business continues to be a popular way of gaining access to the market, and the ownership of several operations has changed as a result of broader industry consolidation,” the company’s latest Lloyd’s Update says.

Three deals have been completed this year and four more are pending regulatory approval.

Major transactions completed include XL acquiring Catlin and Fairfax acquiring Brit, while Tokio Marine is due to complete its acquisition of HCC in the fourth quarter of this year.

Lloyd’s underwriting capacity last year was £26 billion ($52.91 billion), down 1.5% from 2013, Aon Benfield says.

This includes more than £500 million ($1.01 billion) of sidecar quota share reinsurance capacity supplied by 14 special purpose syndicates (SPSs), which are proving a popular entry route, with four launched this year by capital providers.

Underwriting profit fell to £2.3 billion ($4.68 billion) from £2.6 billion ($5.29 billion) in 2013, with a combined operating ratio of 88.1%, compared with 86.8%.

Aggregate capacity of the 10 largest syndicates fell 3% to £11.1 billion ($22.59 billion) last year, representing 42% of the total market this year.

Eight Lloyd’s managing agents now oversee more than £1 billion ($2.03 billion) of capacity. They are Catlin, Tokio Marine Kiln, Beazley, Hiscox, Amlin, QBE, Brit and Liberty.

Excluding life syndicates and SPSs, average syndicate capacity now stands at £331 million ($673.77 million).

“Lloyd’s continues to attract new investors and interest from companies wanting to participate in a market that benefits from a global licence network and strong financial strength ratings,” the Aon Benfield report says.

Last July AM Best affirmed its A rating on Lloyd’s and maintained a positive outlook. Standard & Poor’s affirmed its A+ rating last October and revised its outlook from positive to stable.

Fitch upgraded its rating from A+ to AA- in June last year and later affirmed the rating with a stable outlook.

Lloyd’s has also expanded its geographic reach, in line with its Vision 2025 plan. The Chinese Government has awarded the market a licence to open a branch office in Beijing, and Lloyd’s also secured permission for a platform in Dubai, which opened in March.