Lloyd's set to probe losses suffered by two syndicates

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The Independent Online
LLOYD'S of London is poised to appoint internal inquiry teams to examine how losses of nearly pounds 200m have fallen on two of the market's insurance syndicates, writes John Moore.

Both teams will include an accountant and two market professionals. They will examine the affairs of syndicates 475 and 745.

The affairs of syndicate 475, formed of 1,750 underwriting members, were once managed by Roy Bromley, who committed suicide last month after losses rose from pounds 14m to pounds 54m.

The other syndicate, 745, managed by KPH Underwriting Agencies, is also formed of 1,750 underwriting members. Its managers are seeking pounds 43m from members to help to meet pounds 132.5m of losses that have fallen on it.

A Lloyd's inquiry team led by Kieran Poynter, of the accountants Price Waterhouse, has concluded that Gooda Walker syndicate 299 ran up pounds 39.9m worth of losses because of five 'catastrophe' claims, including those arising from the Piper Alpha oil rig disaster. The inquiry team found that there was no evidence that the syndicate had an improper relationship with Walsham Brothers, one of the most successful firms of small insurance brokers at Lloyd's, which it used.