Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Lloyd's fears US crunch

William Gleeson
Sunday 14 May 1995 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

BY WILLIAM GLEESON

A senior Department of Trade and Industry official, Richard Hobbs, has met with the New York Insurance Department's chief regulator to discuss the content of an imminent report by the US authorities on the finances of Lloyd's of London. It is widely expected that Lloyd's will be told to provide extra funds to support its activities in the US or face restrictions on its ability to do business there.

The US report is expected to comment on the solvency of the market and the way Lloyd's funds in the US have been used to meet claims. Lloyd's, whose solvency is known to be causing a problem for the market, is expected to publish a refinancing and restructuring plan before the end of the month.

Mr Hobbs, head of the DTI's general insurance policy branch who is responsible for overseeing the affairs of Lloyd's, metEdward Muhl, a political appointee of New York's governor, George Pataki.

The insurance market is expected to report a £1.5bn loss for its 1992 year of account (Lloyd's reports its results three years in arrears) in a little over a week's time.

Lloyd's, which is suffering because up to 4,500 Names have refused to meet their share of the £8bn reported lost by the market, is set to issue up to 70 writs in an attempt to solve its cash problems. It has asked the market's agents, who manage the Names' affairs, to identify suitable candidates for litigation.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in