Lloyd's corporate capital vehicles have suffered greater losses than private investors for the underwriting years 1998 and 1999, according to the Association of Lloyd's Members (ALM).
Industry capital lost 17.3% in 1998 and 17.8% in 1999, compared to the Names losses which were only 6.9% and 7% for the same years.
ALM chairman Michael Deeny said there were a number of reasons for the difference.
“Names spread capital, whereas some syndicates at Lloyd's specialise,” he said. “Also, much of the corporate capital is new capital.
“Broadly speaking, many agencies that manage syndicates are well run. Others are not done so well. Some new agencies and syndicates are having to learn by experience”.
But Deeny added the following years should see a period of rate rises and improvements in results.
“Lloyd's is entering a much more profitable year. There has been and is an ongoing rise in rates in insurance areas where Lloyd's is a leading player like non-marine, marine and aviation.
“It is now clear the bottom of the market was 1999. We feel positive about the future of Lloyd's and the future of private capital investors.”
Individual Names should fare well as capital advised by member agents out-performed the Lloyd's averages of 10% and 10.9% by a wide margin.
Traditional unlimited liability Names with bespoke portfolios did even better, out-performing by 3.9% of capacity in 1998 and forecast by managing agents to out-perform by 4.9% of capacity in 1999.