Names claim support of US action group

A Lloyd's of London investor action group, which has launched a last- ditch legal challenge to the insurance market's recovery plan, yesterday claimed to have won the support of a US action group.

The Paying Names Action Group (PNAG) said that the American Names' Association (ANA) has advised its members to support PNAG in applying for a judicial review of Lloyd's reconstruction and renewal plan.

PNAG has said it has about 3,000 members, but industry sources reckon this may be an overestimation since official documents issued ahead of the review indicated it had under 1,300 members.

The ANA claims to represent around 500 of the 3,000 names. This group has opposed the recovery plan for some time.

"I am very pleased to have support in our efforts to redress the balance of fairness in Lloyd's current R&R offer," said the PNAG chairman, Tony Welford, who has led this latest legal challenge.

The case is due to be heard in the High Court on Monday and comes as the 33,500 names at Lloyd's decide whether to support the plan and pay final bills to reinsure billions of pounds of liabilities into a new company, Equitas.

PNAG believes the recovery plan is unfair to names who have continued to meet cash calls from Lloyd's and trade on in the market after 1992 - the cut-off for reinsurance into Equitas.

David Rowland, the Lloyd's chairman, has written to names, in a letter dated 8 August, reiterating his "regret'' that PNAG has proceeded to apply for a judicial review.

He repeated that Lloyd's could not improve further on a pounds 3.2bn settlement offer to names. Lloyd's plans to send further details to names on Monday.

They will receive a breakdown of how personal stop loss policies have affected their final bills and learn the size of their funds at Lloyd's as of 12 July - assets they have pledged in backing business underwritten at the market.

The Association of Lloyd's Members plans to release on Monday a report from solicitors Wilde Sapte, expected to back key elements of the recovery plan including Equitas.

Rebel names are furious that, having shouldered years of losses due to asbestos claims and the like, they will be left out in the cold by the settlement.

Names have until 28 August to accept or reject the settlement offer and until 30 September to pay final bills.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Mortgage Administrator

£20000 - £25000 per annum: Recruitment Genius: We are a vibrant and establishe...

Recruitment Genius: Payments Advisor

£15000 - £20000 per annum: Recruitment Genius: An experienced Repayments Advis...

Recruitment Genius: Investment Analyst

£25000 - £30000 per annum: Recruitment Genius: This leading provider of financ...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Are you looking to take your ...

Day In a Page

A groundbreaking study of 'Britain's Atlantis' long buried at the bottom of the North Sea could revolutionise how we see our prehistoric past

Britain's Atlantis

Scientific study beneath North Sea could revolutionise how we see the past
The Queen has 'done and said nothing that anybody will remember,' says Starkey

The Queen has 'done and said nothing that anybody will remember'

David Starkey's assessment
Oliver Sacks said his life has been 'an enormous privilege and adventure'

'An enormous privilege and adventure'

Oliver Sacks writing about his life
'Gibraltar is British, and it is going to stay British forever'

'Gibraltar is British, and it is going to stay British forever'

The Rock's Chief Minister hits back at Spanish government's 'lies'
Britain is still addicted to 'dirty coal'

Britain still addicted to 'dirty' coal

Biggest energy suppliers are more dependent on fossil fuel than a decade ago
Orthorexia nervosa: How becoming obsessed with healthy eating can lead to malnutrition

Orthorexia nervosa

How becoming obsessed with healthy eating can lead to malnutrition
Lady Chatterley is not obscene, says TV director

Lady Chatterley’s Lover

Director Jed Mercurio on why DH Lawrence's novel 'is not an obscene story'
Farmers in tropical forests are training ants to kill off bigger pests

Set a pest to catch a pest

Farmers in tropical forests are training ants to kill off bigger pests
Mexico: A culture that celebrates darkness as an essential part of life

The dark side of Mexico

A culture that celebrates darkness as an essential part of life
Being sexually assaulted was not your fault, Chrissie Hynde. Don't tell other victims it was theirs

Being sexually assaulted was not your fault, Chrissie Hynde

Please don't tell other victims it was theirs
A nap a day could save your life - and here's why

A nap a day could save your life

A midday nap is 'associated with reduced blood pressure'
If men are so obsessed by sex, why do they clam up when confronted with the grisly realities?

If men are so obsessed by sex...

...why do they clam up when confronted with the grisly realities?
The comedy titans of Avalon on their attempt to save BBC3

Jon Thoday and Richard Allen-Turner

The comedy titans of Avalon on their attempt to save BBC3
The bathing machine is back... but with a difference

Rolling in the deep

The bathing machine is back but with a difference
Part-privatised tests, new age limits, driverless cars: Tories plot motoring revolution

Conservatives plot a motoring revolution

Draft report reveals biggest reform to regulations since driving test introduced in 1935