November 10, 2004 by Canadian Underwriter
Lloyd’s plan to issue 500 million of subordinated debt has been oversubscribed several times over, and the 300-year-old market announced terms of the offering Wednesday. An application to the London Stock Exchange is for a sterling tranche of 300 million at 6.875%, maturing 2025, and a second tranche of 300 million with a coupon of 5.625%, maturing 2024.
Airline insurance rates dropped again in the third quarter of 2004, with average hull rates falling 12% and liability dropping 13% versus a year ago, according to the U.K. branch of Aon. Volume of insurance to the sector rose 3% over the same period, despite the third quarter representing only 15% of annual renewals. Airlines are also continuing to post lower losses, with 2004 showing the best performance in the last five years. Newer aircraft, technology investments and stronger security are paying off, Aon ntoes.
Aviva’s Norwich Union is welcoming news that the U.K. government will look at changing the legal system with regards to compensation. “Unrealistic expectations amongst claimants fueled by a ‘non-win, no-fee’ system which encourages anyone to pursue a claim for anything and everything has lead for calls from many commentators for change,” notes a company press release. Specifically the insurer points to a review of accident management companies and their advertising.