South Africans at Lloyd's

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The Independent Online
SOUTH AFRICAN interests are investing in the Lloyd's of London insurance market, it was disclosed yesterday.

Amalgamated Banks of South Africa has said that its wholly owned subsidiary Absa Syndicate Investments will become a corporate member.

The new corporate investment company is one of more than 10 vehicles to respond to Lloyd's search for money after a mass departure of its individual members. The exodus comes in the wake of more than pounds 5.5bn worth of losses.

Absa is a bank holding company registered in the Republic of South Africa, with investments in banking, insurance and related financial services. It was set up early in 1991 following an agreement to merge the interests of the former Allied, United and Volkskas banking groups.

In their investment in the Lloyd's insurance market the South Africans will work with Wellington Members Agency, a leading Lloyd's agency. They intend to invest in a small number of selected syndicates for the 1994 underwriting trading year, accepting no more than pounds 13m in insurance business.

Members of the Gooda Walker and Feltrim underwriting agencies facing more than pounds 1.5bn worth of losses gained a victory in the Court of Appeal yesterday. It was decided that agents are contractually responsible for any negligence before 1990.