No escape, Lloyd's tells names

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The Independent Online
Lloyd's of London yesterday dramatically stepped up the pressure on recalcitrant names to accept proposals to rescue the insurance market, warning them of dire consequences should they be tempted to force it into liquidation, writes John Eisenhammer.

Names were told there was no escaping their insurance liabilities, and even if Lloyd's had to shut its doors to new business, they could be pursued beyond the grave to meet payments to policyholders.

Lloyd's issued the document yesterday as a spoiler ahead of the presentation next Monday by hardline names of their alternative to the official reconstruction and renewal programme, under which Lloyd's hopes to achieve a speedy global settlement so that the market can carry on trading.

Yesterday's document said that, if forced into liquidation, Lloyd's policyholders and creditors would take precedence over names.