Lloyd’s set for mergers

Shares in all but three listed Lloyd’s companies are trading at a discount to book value and most of the New York-listed Bermudan reinsurers are trading at discounts, making the sector ripe for mergers and acquisitions, the FT reports.

Overcapacity, soft markets and too much cost, plus Solvency II reserving rules are drivers, but strong personalities provide barriers, the FT suggests in a detailed analysis.