U.S. Regulators Give Approval on Lloyd’s Estimate

Following the initial portion of a review of the market, U.S. regulators have given Lloyd’s of London approval on the company’s estimate of $8 billion for gross claims in the Sept. 11 destruction of the World Trade Center, according to a Reuters report.

U.S. regulators wanted assurance that Lloyd’s had completely accounted for incoming claims, along with the moving of risk within the company. Georgia Insurance Commissioner John Oxendine, who is also chairman of a reinsurance committee for he National Association of Insurance Commissioners (NAIC), had begun the review last fall in order to determine that Lloyd’s would be able to pay claims to American policyholders.

Lloyd’s has reported that it believes it has $8 billion in gross claims for Sept. 11, which would result in a loss of $2.87 billion following the claiming of reinsurance.