Canadian Underwriter

Lloyd’s makes cash call to cover claims

February 6, 2002   by Canadian Underwriter

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Lloyd’s of London is set to make a second cash call on its members in order to deal with claims from 1998 to 2001, including its US$2.8 billion exposure to the September 11 terrorist attacks.
The calls will bring in about US$800 million ($564 million pounds sterling). Individual investors (Names) will each be asked to pay about US$46,600.
Following the September 11 attacks, Lloyd’s made a cash call of about US$1.1 billion, with US$348 million of this coming from Names.
Although Lloyd’s reports that nearly half the current cash call will be used for claims prior to 2000, U.S. regulators have been tight on the market’s tail to ensure its September 11 responsibilities are met. Late last year Lloyd’s deposited about 60% of its gross liabilities, and insurance commissioners have given the market until the end of March to come up with the rest of the funds.

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