Lloyd's pounds 2.8bn survival plan
Tuesday 23 May 1995
The move is a key part of what is seen as a make-or-break plan to save the troubled insurance market. Lloyd's will also report losses of pounds 1.2bn for 1992, below market expectations of around pounds 1.5bn. This brings to over pounds 9bn the accumulated loss in the insurance market over the last four years, which has placed unprecedented strain on names.
The loss is reported with Lloyd's customary three-year delay. Representatives of the litigating names' groups gave a broadly positive response yesterday to reports of this new offer, which represents a substantial improvement on the pounds 900m deal rejected last year.
Michael Deeny, chairman of the Gooda Walker Action Group, said: "This is not the end of the campaign, but it is the beginning of the end. People mustn't lose sight of the fact this is not an offer. It is a plan that I hope will succeed, but it's not over yet. It depends on months of negotiation that has yet to come and the distribution of the settlement offer."
Another leading names' activist, Christopher Stockwell, chairman of the Lloyd's names associations' working party, said: "They are talking about serious sums of money, and a cap [on all outstanding liabilities], and if they can make this meaningful to names, then it is likely to succeed."
A final, global out-of-court settlement with names, many of whom are refusing to meet any further liabilities to Lloyd's, is a vital part of the hugely complex restructuring and rescue package the insurance market is frantically trying to put together to carry it out of the difficulties of recent years.
Peter Middleton, Lloyd's chief executive, is also expected to provide some details today of the other elements of the package, including a levy on names to raise urgently needed cash for Lloyd's continuing business, and plans to speed the introduction of a giant reinsurance company, Equitas, which will take over and ring-fence all liabilities on policies sold before 1992. Equitas is set to have assets of pounds 20bn.
The success of the improved out-of-court offer is still seen as hanging critically on the ability of Lloyd's, with Equitas, to provide names with the certainty that after this they will not face more claims on these old policies.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...