Names quit Lloyd's as corporates take over

More than 2,000 investors in Lloyd's of London, who are known as names, quit the insurance market this year, it emerged yesterday.

Names, who put up their own money to underwrite Lloyd's insurance policies, are leaving the market in droves since the huge losses in the late 1980s.

Latest figures show that over the course of the year, 2,020 individual members left Lloyd's, while a further 1,105 switched to underwriting on a limited liability basis - the less risky investment option of being only liable to pay a limited amount on claims.

Only 6,835 names will remain on the traditional unlimited liability basis. They will underwrite about 19 per cent of the market's 1998 capacity, compared with the current year when there were 9,959 members accounting for 22 per cent of Lloyd's capacity.

Lloyd's said the move did not significantly decrease its capacity to underwrite as it was now gaining more money from corporate, rather than individual, investors.

Corporate investors will next year provide 60 per cent of the capacity, pumping in an extra pounds 2.5bn compared with 1997. This is the first time that corporate members have underwritten the majority of insurance risk in the market.

Figures released yesterday indicated an allocated capacity of pounds 10.13bn in 1998, down from pounds 10.30bn in 1997. Lloyd's said the pounds 20m drop was a small percentage of the pounds 10bn total.

Traditionally, individual members with unlimited liability have underwritten capacity at Lloyd's, though many were forced out or chose to quit following losses of over pounds 8bn for the underwriting years from 1987 to 1992. In order to maintain capacity, Lloyd's turned to corporates and other limited liability vehicles.

Lloyd's hit problems after a number of massive claims, such as the Exxon Valdez oil spill, asbestosis cases in the United States and the Piper Alpha oil platform explosion. Manynames took heavy losses, including the ex-boxer Henry Cooper and the former jockey Lester Piggott.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
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

Neil Pavier: Commercial Analyst

£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...

Loren Hughes: Financial Accountant

£45,000 - £55,000: Loren Hughes: Are you looking for a new opportunity that wi...

Sheridan Maine: Finance Analyst

Circa £45,000-£50,000 + benefits: Sheridan Maine: Are you a newly qualified ac...

Sheridan Maine: Financial Accountant

£150 - £190 Daily Rate: Sheridan Maine: One of London's leading water supplier...

Day In a Page

No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat
Saudi Arabia's airstrikes in Yemen are fuelling the Gulf's fire

Saudi airstrikes are fuelling the Gulf's fire

Arab intervention in Yemen risks entrenching Sunni-Shia divide and handing a victory to Isis, says Patrick Cockburn
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media

The only direction Zayn could go

We wince at the anguish of One Direction's fans, but Malik's departure shows the perils of fame in the age of social media
Young Magician of the Year 2015: Meet the schoolgirl from Newcastle who has her heart set on being the competition's first female winner

Spells like teen spirit

A 16-year-old from Newcastle has set her heart on being the first female to win Young Magician of the Year. Jonathan Owen meets her
Jonathan Anderson: If fashion is a cycle, this young man knows just how to ride it

If fashion is a cycle, this young man knows just how to ride it

British designer Jonathan Anderson is putting his stamp on venerable house Loewe
Number plates scheme could provide a licence to offend in the land of the free

Licence to offend in the land of the free

Cash-strapped states have hit on a way of making money out of drivers that may be in collision with the First Amendment, says Rupert Cornwell
From farm to fork: Meet the Cornish fishermen, vegetable-growers and butchers causing a stir in London's top restaurants

From farm to fork in Cornwall

One man is bringing together Cornwall's most accomplished growers, fishermen and butchers with London's best chefs to put the finest, freshest produce on the plates of some of the country’s best restaurants
Robert Parker interview: The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes

Robert Parker interview

The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes
Don't believe the stereotype - or should you?

Don't believe the stereotype - or should you?

We exaggerate regional traits and turn them into jokes - and those on the receiving end are in on it too, says DJ Taylor