By the mumbers. (Briefing).The London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. Market In the past decade, the London market has undergone sweeping changes. A pronounced consolidation of the market, the admission of limited-liability corporate capital and the influx of international insurers have altered this unique market considerably. But even still, London remains the foremost global marketplace for insurance risks. Moving In International insurers now make up 46% of Lloyd's 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 . Foreign-based insurance companies control 21 managing agents in the United Kingdom, with a capacity of $5.6 billion.
U.K.-Based Entities Foreign Insurers
U.K.-listed Lloyd's vehicles 38% --
Traditionalists * 12% --
Other Lloyd's integrated
vehicles 4% --
United States -- 20%
Bermuda -- 16%
Other -- 10%
* Managing agents who continue to adhere to the system of broad-based
capacity support by the Names.
Note: Table made from pie chart
Dropping Names The number of Names has fallen sharply over the last decade, as thousands have withdrawn and corporate capital has replaced them. There are still some 2,490 Names active at Lloyd's, which accounts for 14% (21% if conversion vehicles are included) of the total underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. capacity of the London market. Filling the Gap The London market traditionally provided the majority of reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. coverage for U.S. insurers until the early 1990s, when it experienced record losses due to natural catastrophes and liability losses. Bermudian Ber·mu·da A self-governing British colony comprising about 300 coral islands in the Atlantic Ocean southeast of Cape Hatteras. The first settlement was made in 1609 by British colonists shipwrecked on their way to Virginia. reinsurers stepped in to fill the capacity void left by the London market crisis. [GRAPH graph, figure that shows relationships between quantities. The graph of a function y=f (x) is the set of points with coordinates [x, f (x)] in the xy-plane, when x and y are numbers. OMITTED] [GRAPH OMITTED] |
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