Lloyd's names increase capacity, says ALM

Lloyd’s Names have one again increased their underwriting capacity for the third year in succession, , said the Association of Lloyd’s Members (ALM).

The Names’ share of total market capacity rose from £2.8bn in 2002 to £3.0bn in 2003 and has now reached £3.3bn for 2004, said ALM. Private capacity now has a 22% share of the market for 2004.

The average underwriting capacity for each Name broke through the £1m barrier for the first time, said AIM, reaching £1,024,000. ALM said three quarters of Lloyd’s names still trade on an unlimited liability basis.

The total number of Names fell again to 2,714 from 2,976 in 2003.

ALM chairman Michael Deeny, said: “The current profitability of Lloyd’s will enable Names to recover some of the heavy losses they have suffered in the past. They are encouraged by the important changes being made at Lloyd’s, which should improve its ability to manage future challenges.”