Several inaccurate quotes from myself were published in Insurance Times under the heading "Lloyd's told to sort out pensions" (News, 3 March).

First, so far as I am aware, the material charge in relation to pension deficits only relates to Syndicate 260. Large absolute sums for other syndicates are immaterial in relation to syndicate capacity as they have been spread over a number of years of account.

Second, KGM's treatment of charging the entire pension deficit against just one year of account is 'inequitable' but certainly not 'negligible'.

Third, the ALM has indeed written to all firms of Lloyd's syndicate auditors, inter-alia to seek greater consistency between syndicates in dealing with pension deficits, but it has not also written to all managing agents.

Finally, the Association of Lloyd's Members is concerned that it reflects poorly on Lloyd's and on KGM, rather than the entire agency community, that KGM has charged the entire pension deficit against the 2002 year of account when other agents have not done so.

Having said that, it is encouraging that Lloyd's new finance director, Luke Savage, is now looking at the situation.

Anthony Young
Chief executive
Association of Lloyd's Members