Lloyd's

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Lloyd's,

London insurance underwriting corporation of many separate syndicates; often called Lloyd's of London. Founded in the late 17th cent. by a group of merchants, shipowners, and insurance brokers at the coffeehouse of Edward Lloyd, the association is now international in scope. It was originally concerned with the underwriting of marine insurance, and Lloyd's Register of Shipping, established by Lloyd's, remains an annual publication containing detailed information, such as age, tonnage, class, and construction, of the vessels of all nations, together with supplementary data about docks, harbors, and port facilities. With the exception of long-term life insurance, Lloyd's now issues insurance against a wide variety of risks, including those associated with film stars' legs and rock stars' voices.

During the late 1980s and early 90s Lloyd's suffered financial losses approaching $10 billion as a result of claims ranging from damage from natural disasters (hurricanes and earthquakes) to awards in environmental (pollution and asbestos) lawsuits. This led to the personal financial ruin of many of its syndicates' individual members (called Names), who had accepted total liability in exchange for a share of the profits. Lloyd's also found itself faced with class-action lawsuits against its managing agents, who were charged with having failed to adequately advise their clients of the potential risks involved. To win new financing necessary to cover future policies, Lloyd's changed its centuries-old policy and began accepting corporate money and offering limited-liability investments. Corporate investors now provide some 80% of the capital, and changes adopted in 2002 led Lloyd's to stop accepting (2003) new individual members and to increase central control over the syndicates.

Bibliography

See studies by D. E. W. Gibb (1957, repr. 1972), R. S. Sayers (1957), A. Brown (1974, repr. 1987), A. Raphael (1995), E. Luessenhop (1995).

References in periodicals archive ?
In December, Lloyd's of London Chair John Nelson called ABIR and Lloyd's underwriters "trusted competitors and partners.
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The estate and Lloyd's of London are glad this matter got resolved," Jackson estate attorney Howard Weitzman said in a statement.
Willard Wigan's intricate pinhead-sized replica of the Lloyd's of London building
The model - which took four months to create using white gold and platinum - will be auctioned at the real Lloyd's of London building in Lime Street on Tuesday, July 24.
During a day at Lloyd's of London, dressed in a sober grey suit and sporting a red patterned tie, the royal worker was shown by specialist insurer Hiscox Plc how the firm underwrites risk, ranging from sportsmen and sporting events through to how risk is assessed for various industries.
LONDON - Lloyd's of London, one of the world's most trusted names in insurance, said Thursday that it plans to abandon its hoary accounting practices and end unlimited liability for its individual investors, in a radical effort to modernize and keep up with more-nimble competitors.
Risky Business: An Insider's Account of the Disaster at Lloyd's of London
reinsurance division of Tradition, a leading interdealer broker and a subsidiary of Compagnie Financiere Tradition, and Alwen Hough Johnson (AHJ), a leading Lloyd's of London broking house, today announced that they have entered into a strategic trading relationship to facilitate Tradition's access to Lloyd's and the broader London market for their specialized retro products, including Industry Loss Warranties (ILWs).
Lloyd's of London insurance market has appointed its first ever female chief executive, according to Reuters.
He has recreated one of London's leading landmarks and home to the world's insurance markets, the iconic Lloyd's of London building, on the head of a pin.
NEW YORK -- Lloyd's of London announces the sixth running of the Atlantic Insurance Regatta on the Hudson River, which began today at 11:30 a.