£1.3bn boost for Lloyd's business

THE LLOYD'S of London insurance market plans to accept a record-breaking level of business during 2002. The market said it had emerged from the 11 September attacks 'in good shape' and would be increasing its underwriting capacity next year to around £12.3bn from £11bn this year.

Lloyd's said the additional £1.3bn was a result of a rise in money being committed to the market by backers, who were keen to cash in on the huge increases in insurance premiums seen since the US attacks.

It will be the second year in a row that Lloyd's capacity has risen by £1bn, and the 2002 figure is a £1bn higher than the previous record of £11.3bn in 1991.

Lloyd's chairman Sax Riley said: 'It's hard to make new records in a 300 year-old business, but we now have our largest ever capacity. Clearly the market has emerged from the turmoil surrounding the events of 11 September in good shape.

'Our capital providers are voting with their cheque books. Having come through a number of difficult years, they are now increasing their underwriting commitments as we enter a period of sustained market growth.'

He added that Lloyd's was expecting an increase in business worldwide, but particularly the US, which was its single largest market last year. Lloyd's said several businesses in the market were also expected to announce further increases in their capacity during the first half of 2002.