Lloyd's is to set up a Chinese onshore reinsurance operation in Shanghai, as revealed by Insurance Times' Lloyd's Guide last month.

Lloyd's said the new company, Lloyd's Reinsurance Company (China), would give Chinese insurers full access to the Lloyd's market, "enabling its underwriters to support the development of the local market and the Chinese economy".

Lloyd's is expected to report its first loss since 2001 when it publishes its 2005 results this week, following £2.9bn of hurricane claims.