View from City Road: Lloyd's new money may run into old problems
Tuesday 09 November 1993
This is below the frothier estimates of up to pounds 2bn at one stage. Those new investment vehicles that have withdrawn have found Lloyd's just does not have enough business to satisfy the new demands. Moreover, competitive pressures among the new-style investment operations have forced out the less impressive.
The most ambitious of the vehicles, the London Insurance Market Investment Trust (Limit), organised by Samuel Montagu and James Capel, intends to raise pounds 280m - more than a quarter of the capital that could be booked by the end of the year.
Of Limit's 280 million shares, 210 million will be placed with institutional and other investors and 70 million are being offered to the public. Applications for a minimum of 1,000 shares will close tomorrow.
There are obvious attractions for the sophisticated: vehicles such as Limit offer professional expertise; liabilities, unlike individual investment at Lloyd's, are strictly limited; capital is allowed to work at least twice over through the investment returns on the money put upfront, and (it is hoped) insurance profits; and the insurance market is said to be on an upswing.
The other side of the coin is that a trust the size of Limit may catch a cold if the cycle of insurance rates turns down again. For anyone seeking to join the market now, there is also the worrying spectre that perhaps they may have to finance the problems of the loss- making market's past.
Presents unwrapped, turkey gobbled... it's time to relax
- 1 Shia LaBeouf claims he was raped during #IAMSORRY art installation performance
- 2 This letter from a reader explains why women can’t play football
- 3 'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
- 4 Scientists predict green energy revolution after incredible new graphene discoveries
- 5 Michael Buerk wishes he killed Jimmy Savile when he had the chance - by pushing him overboard a cruise ship
Sean Abbott: Messages of support flood in for bowler after death of Phil Hughes
Plebgate: Andrew Mitchell’s reputation in tatters as judge rules he used the word ‘pleb’
Dr Lam Hoe Yeoh: Voyeur doctor jailed for eight years after using network of hidden cameras to film patients, colleagues and friends on the toilet
Kim Jong-un 'in dire need of allies' within his own government as younger sister appointed to senior role
Scientists predict green energy revolution after incredible new graphene discoveries
Ukip says babies born to immigrants in the UK should be classed as migrants – which would include Nigel Farage’s own children
Obama: The only people with the right to object to immigration are Native Americans
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Ukip mocked after mistaking Westminster Cathedral – for a mosque
Sarah Vine criticises lesbian mother Jack Monroe: 'If she was unsure about her sexuality, she should have taken greater precautions'
iJobs Money & Business
£Attractive Package: Citifocus Ltd: Prestigious asset management house seeks a...
£Negotiable: Citifocus Ltd: This is a varied role focusing on the firm's mutua...
£90000 - £140000 per annum + benefits: h2 Recruit Ltd: Are you a high achievin...
£25000 - £37000 per annum + benefits: h2 Recruit Ltd: Are you seeking to furth...