Lloyd's names support plan

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The Independent Online
MEMBERS of the Lloyd's insurance market yesterday came down heavily against resolutions put forward at an extraordinary meeting last month that would have blocked the management's new business plan.

A call for Lloyd's to accept that it may have to pay damages to aggrieved members was defeated at the meeting by 12,104 votes to 5,673.

There was a similar majority against a proposal that Lloyd's names should be given a bigger say in the introduction of corporate capital to the market. This proposal also urged that members should be compensated for giving up a slice of their ownership of the goodwill and assets of the market.

But a resolution from the Association of Members supporting the management plans was carried by 13,623 against 4,179.

Neil Shaw, chairman of the association, said: 'The majority support the principle of returning Lloyd's to profit as a first priority. That is a vital pre-requisite for a satisfactory settlement of current disputes.

'We hope this marks an end to trial by EGM and an honest commitment to support a realistic business plan,' Mr Shaw said.

David Rowland, chairman of Lloyd's, said that the vote to support the plan gave the management a clear mandate to implement it.

A Lloyd's underwriting member, Daniel Salbstein, who suggested at the annual meeting in June that top professionals may have received backhanders, yesterday 'unreservedly withdrew' and apologised.