Lloyd’s spokesman Adrian Beeby confirmed the organization’s intention to modify the amount members contribute to its Central Fund by raising the involuntary levies they are required to make on all premiums written from the current 0.75 percent to 1 percent.
Originally Lloyd’s had been looking at the possibility of decreasing the levy to 0.5 percent, but in light of the current loss picture (See IJ Website, August 30) decided to reinforce the Fund’s financing.
Beeby pointed out that the fund was “a long way down” in the chain of Lloyd’s protection measures. “First you have the trust funds held by the syndicates, then the provisions for a cash call to the syndicate’s members, both corporate and private. Thirdly, private members can be requested to supply other personal property, then comes the Central Fund.”
“At around £300 million ($435 million) it actually represents only a small part of Lloyd’s £18 billion ($26.8 billion) in assets,” said Beeby. He strongly denied rumors that the increase was a sign of any deterioration in Lloyd’s overall financial condition, and stressed the positive implications of recent endorsements of Lloyd’s finances by rating agencies A.M. Best and Fitch.
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