1 / 11

Lloyd’s of London Recent History Until Now A Few Thoughts and Observations

Lloyd’s of London Recent History Until Now A Few Thoughts and Observations. June 2,3 Presentation by Mike Falcone. Agenda. Who am I? Lloyds 101 Comments on the Lloyds “Culture” Drivers for Change Movement to Corporate Capital Recent Trading Activity The Way Forward. Who am I?.

colette-barton
Download Presentation

Lloyd’s of London Recent History Until Now A Few Thoughts and Observations

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Lloyd’s of LondonRecent History Until NowA Few Thoughts and Observations June 2,3 Presentation by Mike Falcone

  2. Agenda • Who am I? • Lloyds 101 • Comments on the Lloyds “Culture” • Drivers for Change • Movement to Corporate Capital • Recent Trading Activity • The Way Forward

  3. Who am I? • Travelers Insurance Company (1991 - 1996 • Standard US Actuarial Training Programme • Tillinghast London Office (1996 - 1999) • Actuarial Consultant hired in London to work on the Lloyds Recapitalization and Reconstruction (Equitas) • Crowe Syndicate Management at Lloyds of London (1999 - 2002) • Now Spectrum Run Off Services • A significant Lloyds / London market mess purchased by a Bermudian Reinsurer

  4. Lloyds 101 • What is Lloyds • Not an Insurance Company • Small Business Association • Lloyds has historically been very flexible. • Underwriting focused • Historically Lloyds has not been very disciplined or quantitative • Until recently - a PC actuarial profession did not exist • In some measure “created” by Equitas

  5. Lloyds 101 Managing Agents RISK CAPITAL Synd. 123 Individual Member Insured / Reinsured Lloyd’s Broker Members’ Agent / Lloyd’s Advisor Synd. 456 Synd. 789 Corporate Member Retail / Wholesale Brokers

  6. Lloyds 101Chain of security 2002 Premiums Trust Funds Capital held at Lloyds Members’ other declared assets Lloyd’s Central Fund £10,635m £7,324m £212m £323m* *supported by five year insurance programme (limit of £350m any one year) Plus £300m callable from PTFs Figures @ 31st December 2000

  7. Lloyds / London Market Culture • Lloyds • Underwriting Focused • Very close to the market • More Reinsurance (many arbitrage strategies) • Small Flexible entities • Historically very little quantitative support

  8. Some recent Drivers of Change Post Equitas • Move to Corporate Capital • Lumpier, more sophisticated Capital • Recent Trading Activity has been poor • Forecasting has been poor • Questions about Lloyds Security • Rating • Availability of Central Fund Reinsurance • Cash Flow Problems • Trust Funds, etc. • Difficulty in Rating new Capital • capacity grew in 2002

  9. Move to Corporate Capital Capacity Year of Account

  10. Recent Trading Results Profit/Loss (£m) Year of Account (2000+ Cal Yr)

  11. The Way Forward • Chairman’s Strategy Group • Bain Report • Elimination of Unlimited Liability Names • Movement toward Annual Accounting (2005) • Franchiser and Franchisee Relationship • Move away from the annual venture

More Related