A Lloyd's member has blasted the corporation for the £42.6m drop in the Lloyd's Central Fund during 2001.
Deputy chairman of the Australian Association of Lloyd's Members (AALM), Patrick Moore, said: "The quantum of corporate claims on the Central Fund is a disgrace to the risk based capital regime at Lloyd's and a disgrace to the
Council which has not taken appropriate measures to protect the reputation of a Lloyd's policy."
Moore, who is on 14 syndicates with a total premium limit of £2.48m for 2002, pointed to a comment from Lloyd's chairman Sax Riley in the corporation's annual accounts:
"Members are meeting cash calls to fund losses."
Moore said: "If this is so, I wonder why the Central Fund is being hammered?"
The Central Fund is the last line of resort for policyholders insured at Lloyd's and is used to pay for the losses of insolvent members.
The total value of the fund fell to £280.2m in 2001 from £322.8m in 2000.
Lloyd's accounts show the main reason for the drop was £39.9m of claims paid for insolvent members and £100m set aside "under undertakings given to insolvent members".
It is commonly acknowledged that where Lloyd's members rely heavily on the Central Fund, as the 2001 accounts show, underwriting profits have been poor.
This comes at a time when the full impact of the losses sustained from the September terrorist attacks have yet to be felt by the market.
