Lloyd's Denies It Is 'In Jeopardy'.(Terrorist attacks impact on reinsurance market)(International Pages)(Brief Article)(Statistical Data Included)

National Underwriter Property & Casualty-Risk & Benefits Management, September, 2001 by Howard, Lisa S.

A controversial report from Morgan Stanley last week asserted that "large swaths of the reinsurance market are likely insolvent" as a result of the terrorist attack on the World Trade Center, and that "Lloyd's is in jeopardy." "Already financially troubled, we believe the World Trade Center losses will sink some Lloyd's syndicates, drain Lloyd's Central Fund of cash, and exhaust Lloyd's insurance coverage," the report said.

Lloyd's issued a briefing document to inform brokers about its position as a result of the WTC disaster, stressing that the market "can manage the financial impact of the U.S. attacks." Referring to the Morgan Stanley report, Lloyd's said that the report's assertions are "totally unsubstantiated and contrary to Lloyd's own current...

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