Lloyd‘s Questioned on Liquidity, Exposures
Wednesday, October 3rd, 2001 Legislation & Regulation Risk ManagementLloyd‘s has received a barrage of questions on its total exposures and its liquidity following the release of its projected net loss figure of $1.94 billion as a result of the attacks on the U.S. (See IJ Website Sept. 27). It also faces further claims from an explosion in Toulouse, France on September 21. Fitch rating agency, which prior to the announcement had downgraded Lloyd‘s by a factor of two from A+ to A-, said that Lloyd‘s faced gross liabilities of £7 billion ($10.25 billion), and questioned whether the amount of reinsurance calculated in achieving the net figure would be fully paid. Lloyd‘s spokesman Adrian Beeby told the IJ last week that "reinsurance had been a major part of our analysis." He indicated that the vast majority of coverage was placed with companies outside of the Lloyd‘s market and that "ninety percent of it is with companies rated "A" or better by A.M. Best and Standard & Poor‘s."
