We are delighted to see the publication of an article confirming that UK policyholders taking out policies with Gibraltar-based insurance companies are covered by the compensation scheme established under the Financial Services and Markets Acts. We hope this goes some way to allay concerns that may have been raised by brokers and their customers in conducting business with insurance companies based in Gibraltar.

However, we think it appropriate to take the opportunity to clarify that Lloyd's remains the principal risk carrier (87%) on each policy issued by Zenith, leaving a small proportion of our business that is under the auspices of Gibraltar.

Further information relating to the compensation rules can be found on the Financial Services Authority (FSA) website: www.fsa.gov.uk/handbook.

Ken Acott
Chief Executive