Lloyd's names brace themselves for the reckoning

More than 34,000 Lloyd's names world-wide are bracing themselves this weekend for the first estimates of how much it will cost to end their eight-year nightmare with the troubled insurance market.

Lloyd's last night embarked on the biggest mailing exercise in its history, sending out worldwide the individual bills that names have been waiting for, fearing, for many months.

A roll-call of famous names, including Virginia Wade and Henry Cooper, the actress Susan Hampshire and Ian Lang, the President of the Board of Trade, will be among those looking to the doormat on Monday morning for the bulky package, full of advice and warnings, and the vital figure of what Lloyd's pledges is the final bill to end it all.

About 9,000 names face paying the maximum pounds 100,000, over and above losing all their funds deposited at Lloyd's. A further 4,000 will need to raise cash sums of up to pounds 100,000 as the cost of covering all potential liabilities from the old policies that Lloyd's is hiving off into a special re-insurance vehicle, Equitas. Lloyd's stressed yesterday that these are estimated bills; the final Equitas premium statements will be sent out in late May.

Lloyd's chairman, David Rowland, urged names in an accompanying letter to bite the bullet and accept this as the price for drawing a line under the traumas of the past. There will not be another settlement plan. "If we miss this opportunity, the consequences will be very serious. None of us should be under any illusion that any alternative proposals offer greater comfort," he said.

But several names' action group leaders, who had received their bills earlier, warned that the cost for the hardest-hit and most litigious names is still too high. "As a result of what we know now, it is clear the amount of money on the table is insufficient. We need another pounds 400m to make Equitas fly," said John Mays, chairman of the Merrett action group.

He is among a deputation of names' leaders urging the Department of Trade and Industry to bring pressure to bear on Lloyd's to find more than the pounds 2.8bn of credits and debt relief that the society is using to reduce the cost to names of settling.

Representatives of the names believe that without another pounds 350m-pounds 500m added into the pot to reduce, and perhaps halve the size of the maximum bill to pounds 50,000, there is a serious risk that the settlement will be voted down when it is put to the market as a whole in July. Names believe it would cost only about pounds 350m to halve the cap.

As well as shrinking the pounds 100,000 cap, which affects 9,000 heavily loss- making names, there are hopes that additional funds can be found to help out members of the hardest-hit syndicates and to increase the sums set aside for hardship relief. "Either Lloyd's needs to find more funds from market professionals, or with the DTI it must agree to reduce the very harsh reserving requirements for Equitas. Either would ease the cost to names," Mr Mays said.

Anthony Nelson, the DTI minister responsible for the insurance market, has been told by names groups that the funding of Equitas is far too conservative and is mopping up money that could be better used in improving the terms for names.

Lloyd's has been hinting privately that it expects to be able to increase the offer to names by the time the final bills go out, even if it means raising a loan in the market.

Comment, page 21

Weekend, page 22

The Lloyd's nightmare

1987 Profit pounds 509m

1988 Loss pounds 510m

1989 Loss pounds 1.9bn

1990 Loss pounds 2.3bn

1991 Loss pounds 2bn

1992 Loss pounds 1.2bn

1993 Est profit pounds 1bn

1994 Est profit pounds 1bn

1995 Est profit pounds 888m

Voices
voicesGood for Lana Del Rey for helping kill that myth, writes Grace Dent
Sport
The Pipes and Drums of The Scottish Regiments perform during the Opening Ceremony for the Glasgow 2014 Commonwealth Games at Celtic Park on July 23, 2014 in Glasgow, Scotland.
Commonwealth GamesThe actor encouraged the one billion viewers of the event to donate to the children's charity
Sport
Karen Dunbar performs
Entertainers showcase local wit, talent and irrepressible spirit
Sport
Members of the Scotland deleagtion walk past during the opening ceremony of the 2014 Commonwealth Games at Celtic Park in Glasgow on July 23, 2014.
PROMOTED VIDEO
Arts and Entertainment
The Tour de France peloton rides over a bridge on the Grinton Moor, Yorkshire, earlier this month
film
Life and Style
fashion Designs are part of feminist art project by a British student
News
Very tasty: Vladimir Putin dining alone, perhaps sensibly
news
Life and Style
Listen here: Apple EarPods offer an alternative
techAre custom, 3D printed earbuds the solution?
Arts and Entertainment
Top guns: Cole advised the makers of Second World War film Fury, starring Brad Pitt
filmLt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a uniform
News
The University of California study monitored the reaction of 36 dogs
sciencePets' range of emotions revealed
News
Snoop Dogg pictured at The Hollywood Reporter Nominees' Night in February, 2013
people... says Snoop Dogg
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Arts and Entertainment
A scene from Shakespeare in Love at the Noel Coward Theatre
theatreReview: Shakespeare in Love has moments of sheer stage poetry mixed with effervescent fun
News
Joining forces: young British men feature in an Isis video in which they urge Islamists in the West to join them in Iraq and Syria
newsWill the young Britons fighting in Syria be allowed to return home and resume their lives?
Arts and Entertainment
The nomination of 'The Wake' by Paul Kingsnorth has caused a stir
books
News
i100
Life and Style
food + drinkZebra meat is exotic and lean - but does it taste good?
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

PMO Analyst - London - Banking - £350 - £400

£350 - £400 per day: Orgtel: PMO Analyst - Banking - London - £350 -£400 per d...

Cost Reporting-MI Packs-Edinburgh-Bank-£350/day

£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...

Insight Analyst – Permanent – Up to £40k – North London

£35000 - £40000 Per Annum plus 23 days holiday and pension scheme: Clearwater ...

Test Lead - London - Investment Banking

£475 - £525 per day: Orgtel: Test Lead, London, Investment Banking, Technical ...

Day In a Page

Screwing your way to the top? Good for Lana Del Rey for helping kill that myth

Screwing your way to the top?

Good for Lana Del Rey for helping kill that myth, says Grace Dent
Will the young Britons fighting in Syria be allowed to return home and resume their lives?

Will Britons fighting in Syria be able to resume their lives?

Tony Blair's Terrorism Act 2006 has made it an offence to take part in military action abroad with a "political, ideological, religious or racial motive"
Beyoncé poses as Rosie the Riveter, the wartime poster girl who became a feminist pin-up

Beyoncé poses as Rosie the Riveter

The wartime poster girl became the ultimate American symbol of female empowerment
The quest to find the perfect pair of earphones: Are custom, 3D printed earbuds the solution?

The quest to find the perfect pair of earphones

Earphones don't fit properly, offer mediocre audio quality and can even be painful. So the quest to design the perfect pair is music to Seth Stevenson's ears
US Army's shooting star: Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform

Meet the US Army's shooting star

Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform
Climate change threatens to make the antarctic fur seal extinct

Take a good look while you can

How climate change could wipe out this seal
Should emergency hospital weddings be made easier for the terminally ill?

Farewell, my lovely

Should emergency hospital weddings be made easier?
Man Booker Prize 2014 longlist: Crowdfunded novel nominated for first time

Crowdfunded novel nominated for Booker Prize

Paul Kingsnorth's 'The Wake' is in contention for the prestigious award
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned

Vladimir Putin employs a full-time food taster

John Walsh salutes those brave souls who have, throughout history, put their knives on the line
Tour de France effect brings Hollywood blockbusters to Yorkshire

Tour de France effect brings Hollywood blockbusters to Yorkshire

A $25m thriller starring Sam Worthington to be made in God's Own Country
Will The Minerva Project - the first 'elite' American university to be launched in a century - change the face of higher learning?

Will The Minerva Project change the face of higher learning?

The university has no lecture halls, no debating societies, no sports teams and no fraternities. Instead, the 33 students who have made the cut at Minerva, will travel the world and change the face of higher learning
The 10 best pedicure products

Feet treat: 10 best pedicure products

Bags packed and all prepped for holidays, but feet in a state? Get them flip-flop-ready with our pick of the items for a DIY treatment
Commonwealth Games 2014: Great Scots! Planes and pipers welcome in Glasgow's Games

Commonwealth Games 2014

Great Scots! Planes and pipers welcome in Glasgow's Games
Jack Pitt-Brooke: Manchester City and Patrick Vieira make the right stand on racism

Jack Pitt-Brooke

Manchester City and Patrick Vieira make the right stand on racism
How Terry Newton tragedy made iron men seek help to tackle their psychological demons

How Newton tragedy made iron men seek help to tackle their psychological demons

Over a hundred rugby league players have contacted clinic to deal with mental challenges of game