Names hit by Equity losses

As many as 1,500 Lloyd’s Names face heavy losses from their exposure to Equity.

Equity was yesterday censured and ordered to pay £95,000 in costs by the Lloyd’s board for its failure to adequately reserve for motor claims, leading to about £500m of losses between 2008 and 2011. Three directors including former chief executive Neil Utley are expected to face a Lloyd’s disciplinary board later this month.

The Association of Lloyd’s Members (ALM), which represents Names, estimates that they own 36% of the syndicate, meaning individuals face losses totalling up to £180m.

ALM chief executive Anthony Young told The Times: “It looks as though the management and the board at the time were pretty inept, although it doesn’t change my opinion that mass litigation [by Lloyd’s] is unlikely.

“Names will continue to watch anything that comes out to see if there is any possibility of obtaining a recovery.”