Lloyd’s syndicates and names fewer for 2002

Lloyd’s of London will have fewer Names, or individual investors, as well as syndicates for the coming year. This comes despite a rise in investment in the insurance market, in response to hardening rates for 2002.The number of syndicates has dropped from 108 last year to 86, while the number of Names with unlimited liability fell from 2,852 to 2,490. Just ten years ago, Lloyd’s had 354 syndicates, although the number has been steadily dropping for the past several years. Some of the drop in numbers is due to consolidation, with Names joining into corporate capital investments, and at least 12 of the 22 syndicates merging with others, or being replaced by new syndicates under the same ownership.However, there is speculation that Lloyd’s exposure to the September 11 terrorist attacks, which equals 1.9 billion pounds, may be the cause of some smaller syndicates departing.That said, Lloyd’s is seeing increased capital investment for 2002, up to 12.3 billion pounds, a 12% rise over last year. The contribution of Names, despite the drop in numbers, remains steady. “Despite heavy cash calls and substantial losses, names are weathering the storm,” says Michael Deeny, chairman of the Association of Lloyd’s Members (ALM). “Many are increasing their capacity to participate in the strongest insurance market for years.”