Lloyd’s CEO Nick Prettejohn announced that the venerable institution’s market capacity would be the biggest it has ever had in its 315 year history – £14.25 billion ($22.47 billion), an increase of £1.95 billion ($3.075 billion) over 2002.
In a speech in New York to “key figures in the global property casualty insurance industry,” as Lloyd’s announcement described them, Prettejohn said that the new capital was in recognition of the world class business of the London market and an endorsement of Lloyd’s reform efforts and modernization initiatives. He called it “a demonstration of powerful commercial and financial strength, in defiance of the predictions of a number of pessimistic observers.”
“It is testimony to the unique features of a genuine and enduring marketplace,” he continued, noting that nearly $9 billion in capital had been “injected into the Lloyd’s market over the last two years.” He noted that its U.K. quoted business is around 50 percent higher at present, than it was at the time of the Sept. 11 attacks.
The tragedy touched to everyone in the insurance industry who lost colleagues and friends, said Prettejohn. It was the largest single loss in history, and required unprecedented efforts and sacrifices. Lloyd’s, had demonstrated its “resilience and vitality,” he indicated, by paying out around $2.5 billion in Sept. 11 related claims, and placing $5 billion in its U.S. Trust funds to assure that all claims would be paid.
“Lloyd’s has shown remarkable resilience. The vitality of the market today is testimony to its enduring competitive strength recognized by policyholders and investors and demonstrated by a robust flow of business and capital into the market,” he continued.
“The combination of enduring competitive strength and tough, thoughtful reform will be a powerful one. The market is seizing the opportunity today and building the opportunity for the future,” Prettejohn concluded.
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