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Friday 10 March 1995 00:02 GMT

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Premium bets

SURELY James Buchan ("Insanity at the heart of banking", 5 March) is being unduly kind to Lloyd's by suggesting its problems are due to "a series of acts of God". Insuring on adequate premiums is profitable business; insuring on inadequate premiums is mere gambling.

Philip Best

New Malden, Surrey

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