Lloyd's battles to solve market's capital needs
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE authorities of Lloyd's are struggling to produce a credible business plan to resolve the market's capital needs before it announces a further pounds 2bn worth of losses.
David Rowland, Lloyd's chairman, said that the plan would be unveiled next month, the first of its type in Lloyd's 300-year history.
Mr Rowland said yesterday that the plan would deal with five broad issues - cost reduction and ways to improve services; the improvement of professional standards; ensuring capital growth and improving the capital base; future business development; and what Lloyd's describes as inherited problems, such as the large bulk of the 230 insurance syndicates that have not been able to close their books.
McKinsey, the international management consultancy, is providing help. In the past two years it has produced a report on Lloyd's future for the next five years, published last year at a cost to Lloyd's of pounds 2m. Mr Rowland chaired a Lloyd's task force that worked with McKinsey on the previous study.
That study was widely regarded by the market to have been of little relevance to the problems caused by the billions of pounds of losses that subsequently surfaced. Mr Rowland said that the latest plan would cost less than the earlier McKinsey report.
Lloyd's said that its market and insurance companies operating in London could face claims of up to dollars 300m from the explosion at New York's World Trade Centre.
The Port Authority of New York and New Jersey, owner of the centre, has three policies led by Lloyd's underwriters but market officials have no precise figures of the claims that will eventually emerge.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments