Lloyd’s capacity hits record high for 2002

Lloyd’s of London says it will have record-breaking capacity in 2002, to the tune of US$17.2 billion. This, combined with last year’s capacity of US$15.4 billion, means the market’s capacity has grown 20% in two years. The previous highest year was 1991, when capacity hit US$15.8 billion.According to a Lloyd’s statement, the increase reflects confidence in hardening rates. It is also a reflection of Lloyd’s international presence, particularly in the U.S., which became Lloyd’s biggest single market last year.”Our capital providers are voting with their checkbooks,” says Lloyd’s chairman Sax Riley. “”Having come through a number of difficult years, they are now increasing their underwriting commitments as we enter a period of sustained high premium rates.”The US$17.2 billion figure is expected to grow in early 2002, as other businesses in the market increase their business.