The London insurance market is awash in rumors that Lloyd’s may issue another cash call sometime next week in order to raise additional funds to help pay the estimated $2.7 billion in claims resulting from the attacks of Sept. 11.
Lloyd’s Media Relations spokesperson Sara Chorley said that, “yesterday [January 31] was the last day for the syndicates to tell us whether they need one [a cash call] to make good on particular losses.”
She explained that each syndicate was responsible for its own accounting, and that the results would probably be made known next week, and a decision taken at that time. Under Lloyd’s procedures cash calls are made on a quarterly basis. The last one in October assessed members a total of £780 million ($1.1 billion), directly attributed to the WTC losses.
Chorely was unable to comment further on the possibility of a second cash call, but it appears likely. In an announcement last December A.M. Best stated that it “anticipates that further cash calls of approximately GBP 500 million [$705 million] will be necessary at the end of March and that these will be successfully collected.”|”lloyd’s, may, issue, cash, call, next, week
Topics Excess Surplus Lloyd's
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