Lloyd’s of London confirmed analysts’ expectations with its second cash call to syndicate members in four months, asking them to provide an additional £546 million ($802.8 million) to cover Lloyd’s net loss estimates for the period 1998 to 2001, principally the anticipated $2.7 billion in losses from September’s attacks on the World Trade Center.
The widely expected action (See IJ Website Feb. 1) will seek an average £33,000 ($47,000) from the 2490 individual Names, a total of around $117 million, and the rest from the corporate capital providers that now fund over 80 percent of Lloyd’s syndicates.
The amount is less than the $1.11 billion Lloyd’s asked its members for in October, immediately following the WTC attacks, but the Names have now been asked to pay on average over $115,000 in the last four months. Taken with Lloyd’s intended reform of its structure and accounting procedures (see IJ Website Jan.16), it could well hasten the further exit of Names from Lloyd’s.
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