Broker inherits liability millstone
Sunday 10 September 1995
Lloyd Thompson unwittingly inherited the liability when it took over another Lloyd's brok-er, Graham Bell, last November. The size of the liability is not known.
Dai Ichi has been criticised for having dubious security and recently stopped underwriting. Since the Bell takeover, Lloyd Thompson has placed no new business with it. Richard Corfield, managing director of Lloyd Thompson, said that at the time of the takeover of Bell it was not practical to check out the status of the reinsurers with which the broker had placed business.
Questions were first raised about Dai Ichi four years ago, when US regulators found that the founding Japanese pension funds said to back it through the Umeda foundation in Tokyo did not exist in Japan.
At the time, Dai Ichi explained that the funds were not registered domestically because they were "not solicitous of investors in Japan" and were "subscribed to privately".
Doubts about Dai Ichi Kyoto Re's financial backing had been aired, Mr Corfield acknowledged. But he defended Graham Bell's decision to place the business with the reinsurer.
The security of many market players had been questioned, Mr Corfield said. "What would you say about Lloyd's security now? Are you suggesting that we don't place our business there?"
Mr Corfield said all but one of the eight reinsurance contracts with Dai Ichi Kyoto Re placed by Graham Bell were written for a 12-month period only. Claims may nonetheless arrive on some contracts, he admitted.
Paul Yorke-Wade of Corporate and Administrative Services, hired to rescue Dai Ichi, said Lloyd Thompson was seeking payment on behalf of insurers includine Korea Foreign Insurance and General Insur- ance Corporation of India.
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 4 Ed Sheeran dedicates song to David Cameron
- 5 Now we know whose fault it is if you end up being murdered in Thailand
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
Thailand beach murders: Hannah Witheridge 'was raped by two men before being killed'
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...