Fitch Ratings has affirmed the financial strength of Lloyd’s with an A+ rating and a stable outlook.

Standard & Poor’s has retained an A+/stable rating for Lloyd’s since April 2007.

Fitch says its rating “reflects the strong financial profile of Lloyd’s”, which absorbed “what proved to be an unprecedented level of natural catastrophe losses sustained by the insurance industry during 2011”.

The agency expects Lloyd’s earnings to recover throughout this year, supported by a “marked improvement” in the underwriting result.

The positive rating is also attributed to the market’s strong capital position, a conservative allocation of assets and the success of Lloyd’s Performance Management Directorate, which reviews and controls the performance of individual syndicates.

Fitch also affirmed the Society of Lloyd’s rating at “A” and Lloyd’s Insurance Company (China) Ltd at “A+” and rated them as stable.

Market participants at Lloyd’s underwrote £23.5 billion ($35.6 billion) of gross written premium last year, a year-on-year increase of 3.9%.