NAIC Withdraws Lloyd‘s 60% Funding Deal

On Tuesday The National Association of Insurance Commissioners reversed its previous decision to permit Lloyd‘s to deposit 60 percent, rather than 100 percent, of the amount normally required into its U.S. Reinsurance trust fund based on estimates of its gross liabilities. The NAIC sited the "need to fully evaluate any liquidity problems on a syndicate-by-syndicate basis prior to granting an extension application to the entire Lloyd‘s market," as the reason for its decision. It reiterated, however, that "one hundred percent of funding of gross liabilities has been and continues to be the legal requirement for credit for reinsurance for Lloyd‘s of London Syndicates."