Operating & Financial Review

Lloyd’s strengths became increasingly recognised

The attractions of Lloyd’s as a platform for Amlin increased in 2006 as its resilience to catastrophic events became better recognised by clients around the world, as plans for the removal of risks associated with Equitas were announced and as its new Chief Executive started to grip process reform.

Closer to home, nearly eight in ten of the 350 UK Lloyd’s brokers interviewed by Gracechurch Consulting for their 2006 study were generally positive about the future of the Lloyd’s market.

 
In October it was announced that Berkshire Hathaway would reinsure Equitas and remove the risk that a potential weakening in Equitas’ solvency could damage confidence in Lloyd’s or that an increase in liabilities could require part funding by the ongoing Lloyd’s market. While the transaction remains subject to a number of consents, this has already positively affected client and rating agency sentiment to Lloyd’s and, when finalised, could help a step up in Lloyd’s security rating.

With the help of Amlin and G6, Lloyd’s has built good momentum in 2006 towards the process reforms which are needed to improve Lloyd’s competitive position. There are clear signs of this continuing into 2007.

See Infrastructure – enhancing capability and delivery for information on process reform developments.

© Copyright Amlin 2006