Lloyd's Numbers in the News
8/30/01 to 11/27/01
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Date |
Publication |
Speaker |
Numbers Given |
Statement Given |
Calculations, |
|
8/30/01 |
BBC News |
Andrew Moss |
if market rumours are to believed, the fund has shrunk dramatically from the £323m it contained at the end of last year. |
the council has concluded it would be prudent for the standard contribution rate payable by all members for the 2002 year of account to be 1%," said Lloyd's director of finance and operations, Andrew Moss |
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9/10/01 |
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Chatset: 1999 (£1.2B), 2000 (£259M). Lloyd's: 1999 (£1.39B), 2000 (£694M) |
Both Lloyd's of London and syndicate analyst Chatset Ltd. have predicted marketwide losses at Lloyd's for the 1999 and 2000 years of account. |
[1.39 x 1.45 = $2 bn; 0.694 x 1.45 = $1 bn] |
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9/11/01 |
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Lloyd's: 1999 (£1.39B), 2000 (£694M) |
Lloyd's is expected to break even in the 2001 year of account. |
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9/16/01 |
Sunday Business Post |
Sax Riley, Chairman |
too soon to quantify total losses |
disaster. . . "generated the most complex set of insurance liabilities and interdependencies the industry has ever seen." |
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9/17/01 |
Daily Telegraph |
Melanie Wright |
"substantial involvement" |
Lloyd's. . . is expected to make the largest payouts, with analysts expecting a bill of $5 billion or more. |
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9/17/01 |
The Independent |
Susie Mesure |
(no amount mentioned) |
Lloyd's is partly responsible for covering not only. . . Airlines, but also the. . . towers. |
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9/18/01 |
Daily Mail |
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£1bn ($1.5bn) |
Lloyd's. . . is thought to have estimated internally that it is facing a $1.5 bn. . . bill |
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9/18/01 |
Wall Street Journal |
Christopher Oster Sax Riley |
(analysts) $1.5 billion or more |
Lloyd's. . . said [it] is backed by $27 billion in assets. [Riley] said. . . "Lloyd's can manage the financial impact of the U.S. attacks. |
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9/18/01 |
Agence France Press |
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("sources") about $1.5 billion |
Lloyd's said. . . It had "completed a preliminary cost estimate of its potential exposures. . ." |
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9/23/01 |
Mail on Sunday |
spokeswoman |
|
. . . said Lloyd's has £18 billion of immediately available capital to pay claims. |
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9/26/01 |
Lloyd's List |
|
Lloyd's. . . downgraded by both Fitch and Standard & Poor's. |
Any losses left unpaid will have to be met by the central fund, which has capacity of up to Pounds 1.1 bn (Dollars 1.6 bn). |
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|
9/26/01 |
The Independent |
Patrick Tooher |
Lloyd's. . . has been slow to confirm how much it is on the hook for. |
"This pot [central fund] currently stands at pounds 340m. . . Lloyd's spokesman." |
[340 x 1.45 = $493 million] |
|
9/26/01 |
Reuters |
Clelia Oziel |
losses £1.3 billion ($1.92 billion) |
Lloyd's said its exposure was equivalent to 12% of the market's 2001 capacity. . . It is projecting losses for 1999 and 2000 of £1.39 billion and £694 million respectively. |
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|
9/27/01 |
The Independent |
Katherine Griffiths |
(analysts) up to £1.5 billion |
". . . which is 15% of its capacity this year." "Lloyd's may have to dip into two US. . . funds, worth in total £5.3 billion. . ." |
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9/27/01 |
PR Newswire |
Sax Riley, Chairman |
[approx.] $1.9 billion (£1.3 billion) |
12% of 2001 capacity - "the market's strong capital base will absorb this loss." |
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9/27/01 |
The Guardian |
Jill Treanor |
Lloyd's first estimate 1.3 billion |
Fitch… said up to at least £1.7 billion. |
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|
9/28/01 |
AM Best |
John Oxendine |
need to post trust funds at 100% |
"There is no rule book for this, and we're basically writing the rule book as we go." |
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9/30/01 |
Mail on Sunday |
Lisa Buckingham |
Pounds 1.3 billion after it has reclaimed money from its reinsurers. |
The market will not reveal the scale of claims it expects to receive before it starts to recoup reinsurance money. … Riley said Lloyd's has £18 billion it can call on… |
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10/1/01 |
Daily Mail |
|
may face total claims of £6.5bn |
2,800… Names… face bills [cash calls] averaging £75,000 |
[2,800 x 75,000 = £210m |
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10/2/01 |
Sunday Business |
Jon Menon |
total insurance claim to… Lloyd's… wil be at least $9.5 billion |
The net [$1.9 bn]… is based on Lloyd's being able to recover… from its reinsurers. Analysts say… it [the net] will increase by at least $380m." |
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10/3/01 |
Financial Times |
|
gross liabilities of up to £7bn |
Lloyd's currently has £4.1bn in its US reinsurance trust fund. Mr. Beeby declined to say how much Lloyd's would have to deposit… said "Liquidity is not a problem at this stage." |
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10/4/01 |
Evening Standard |
Anthony Hilton |
Lloyd's… net… will be £1.3 billion |
[Fitch]… gross cost… may be as much as £7 billion |
gross cost 30% higher, but no change in stated net |
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10/5/01 |
Lloyd's List |
|
official estimate… £1.3 billion |
1994 [Northridge] projections... were $2.5bn one month after the event… 18 months… the final figure had ballooned to $12.5 billion... |
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10/8/01 |
John Oxendine |
net exposure… $1.9 billion |
Oxendine said Lloyd's gross estimate has been fluctuating daily in a range between $7.8 billion to $8 billion. |
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10/14/01 |
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[Lloyd's] likely to end up with a gross bill that could top $9bn (£6.2bn) - although net liability is currently figured by Lloyd's to be about $1.9bn. |
"We believe Lloyd's is solvent" the paper quotes Georgia insurance commissioner John Oxendine as saying. "But we have to be cautious and verify that." |
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10/15/01 |
AM Best |
|
net exposure… $1.9 billion |
but its gross losses are said to be around $8 billion. [8 -:- 1.45 = £5.5 billion] |
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10/15/01 |
Simon Bowers |
estimated… net… £1.3 billion |
The NAIC investigation will focus on the £6.2bn gross insurance bill Lloyd's is expected to face. |
[6.2 x 1.45 = $9 billion] |
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10/16/01 |
Brendan Noonan |
US regulators will call in a major accounting firm to help with an intensive examination of Lloyd's as they seek to determine the market's financial condition. . . |
…Lloyd's will be allowed to fund liabilities related to the attacks at 60% [instead of 100%] when the next adjustment comes due Nov. 15. …"they could have raised the 100% if they had to, but it… would have been harmful to Lloyd's," Oxendine said |
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10/17/01 |
James Brewer |
Regulators are meanwhile allowing Lloyd's for the time being to reduce the amount held in a trust fund covering its US liabilities to 60% from 100%. |
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10/17/01 |
Nick Prettejohn |
gross loss exposure is £5.4bn, net of inter-syndicate reinsurance |
the [NAIC] audit… "is primarily a review of our reinsurance protection which is common practice." |
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10/18/01 |
John Oxendine |
estimated… net… $1.9 billion |
"but its gross exposure, previously said to be about $8 billion, is now approaching $10bn." |
gross estimate 25% higher, no change in net estimate |
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10/18/01 |
The Guardian |
Patrick Collinson |
[cash call of] £246m [from names] |
average will be £44,000… over thousands of names |
[246m -:- 44,000 = 5590 names] |
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10/19/01 |
Financial Post |
Tom Bawden |
Lloyd's forecasts damages of £1.3bn |
Lloyd's 2,800… Names have been asked to contribute £246 million [out of £780 million] |
[246 -:- 2,800 = £87,857 per name |
|
10/19/01 |
The Independent |
Katherine Griffiths |
Lloyd's faces total claims of £5.4bn |
Lloyd's… estimated… net total of £1.3bn… agrees with S&P that the gross figure… is about £5.4bn. |
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10/21/01 |
The Observer |
Richard Wachman |
pounds 1.3 billion |
Lloyd's has refused to give a figure for its gross exposure… but analysts say that it could top pounds 7bn. |
[7 x 1.45 = $10.15bn] |
|
10/23/01 |
|
60% funding recommendation withdrawn |
100 % funding requirement... maintained for all multiple beneficiary trust reinsurers. examination of Lloyd’s will commence prior to Dec. 31, 2001, to... assess the security provided to U.S. insurers who transfer risk to Lloyd’s. |
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10/24/01 |
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[100%] funding of gross liabilities… continues to be the legal requirement for credit for reinsurance for Lloyd's of London syndicates. |
The Reinsurance Task Force has received detailed submissions from Lloyd's indicating the gross and net exposures of syndicates and reinsurance recoverables... spread over more than 130 Lloyd's syndicates. [Note: Lloyd's had 108 syndicates total in 2001.] |
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10/24/01 |
Reuters |
|
Lloyd's… will pay out $1.9 billion |
Lloyd's holds about $7.6 billion in the United States. |
[7.6 -:- I.45 = £5.2bn] |
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10/25/01 |
Financial Times |
|
100% of gross liabilities… estimated at £3.75bn |
[NAIC] said they would allow Lloyd's to deposit… 60%, or £2.25bn |
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10/25/01 |
The Daily Telegraph |
|
Lloyd's has already confirmed that it has £5.4 billion of gross exposure… and £1.3 billion net exposure.. |
A spokesman… said… "It is too early to tell what the implications [of 100% funding] will be. There is no solvency issue here, just an issue of liquidity." |
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10/26/01 |
Best's News |
David Pilla |
Lloyd's syndicates normally must maintain US trust funds at 100% of liabilities for reinsurance business [US]… but regulators have agreed to cut that requirement to 60% for claims related to the Sept. 11 World Trade Center disaster-- at least for the third quarter. |
"The task force also said an examination of Lloyd's will begin before Dec. 31… The NAIC also is seeking an accounting firm to audit Lloyd's syndicates, to assure that they will be able to pay their claims from the Sept. 11 disaster." |
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10/26/01 |
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[NAIC] withdrew its recommendation to allow Lloyd's to temporarily extend the timing of its 100% funding requirements. . . |
Should any funding levels of lessthatn 100% materialize, the task force will work with the New York Insurance Department, as domiciliary regulator of the trusts, to perform the necessary analysis and identify appropriate remedies. |
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10/27/01 |
The Daily Telegraph |
Christopher Stockwell |
warned that Lloyd's exposure… could rise as high as £9 billion. [$13 billion] |
"Names should be aware that… cash calls… could possibly be five times the size of the call made last week." [£246 million] |
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10/29/01 |
Financial Times |
|
Names have already been asked for… £44,000 apiece [average] |
Lloyd's may soon have to make a further £30,000 apiece cash call… |
[246m -:- 2,850 = £86,316 ea.] [44K + 30K = only £74K] |
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10/29/01 |
Business Insurance |
|
Lloyd's reported… its total exposure… is £5.4 billion… |
… it currently maintains US trust funds of £1.2 billion for surplus lines and £4.1 billion for reinsurance claims. |
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10/31/01 |
Financial Times |
|
2,852 individual Names currently |
Individual Names have… been asked to stump up £246m… That works out at roughly £50,000 each… |
[2,852 x 50,000 = £142.6m]; [246m -:- 2,852 = £86255 each |
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11/1/01 |
Sunday Business |
|
Numis Securities estimates at least 15% of Names will leave the market |
after receiving cash calls for about £50,000… another cash call in February bringing the total cost to an average of £100,000 per investor. Two-thirds of the Names have "unlimited liability"… |
[2,852 x 2/3 = 1901] |
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11/2/01 |
Lloyd's List |
James Brewer |
net loss $1.9bn, gross $8bn, but [Moody's] expected the figure to increase significantly |
a significant portion of the [central] fund… already earmarked. Four... years [1997-2000] of... losses… estimated… more than $6bn before September 11. |
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11/4/01 |
Joseph B. Treaster |
On Wednesday the regulators hired Arthur Anderson… to help with their investigation, and on Monday Mr. Oxendine and seven other regulators will meet in Dalls to disucss their next steps. Industry specialists said the examination was likely to last two or three months and cost more than $1 million. |
The regulators want to do everything possible to help Lloyd's through this crisis. |
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11/5/01 |
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The NAIC has brought in accountants Arthur Anderson to conduct an audit, which is designed to ensure American insurers are not left out of pocket. . . |
"We suspect that liquidity problem is short term. Lloyd's says it is short term and we have no reason to disbelieve Lloyd's," Mr. Oxendine added. |
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11/19/01 |
Business Insurance |
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Lloyd’s of London has added $2 billion to its U.S. trust funds in compliance with [emphasis added] a compromise deal it negotiatee with the NAIC last month requiring requiring Lloyd's to fund 60% of its expected gross losses. . . By Nov. 15. |
The $2 billion is in addition to the $1.74 billion… for surplus lines losses and 5.93 billion for reinsurance losses. |
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11/27/01 |
Samantha Lafferty |
Lloyd’s raised its estimate... by 45% to £1.9 billion ($2.7 billion)...Lloyd’s faces [gross claims] of £5.7 billion, up from...£5.4bbn...Lloyd's widened its estimated 1999 loss to £1.67bn from £1.39bn...doubled its estimate for 2000 losses to £1.49bn |
Investors will pay £650 million of claims from the attacks in the 2000 accounting year, with the balance in 2001. |
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