Barbican is proud to be able to operate as a syndicate at Lloyd’s. We’re keenly aware of being part of a tradition that stretches back over 300 years—but also of being part of the largest and most innovative insurance market in the world.
The reassurance of Lloyd’s security
Lloyd’s is the best possible platform upon which to build our insurance and reinsurance business. It offers many advantages both to ourselves as insurers and reinsurers—and to the policyholders whose interests we serve. Not least of these is the reassurance of financial security and stability: Lloyd’s currently holds A+ ratings from Fitch Ratings and Standard & Poor’s, and an A rating from A.M. Best—and its unique capital structure provides a high degree of protection for our policyholders.
Our policyholders are in good company at Lloyd’s. It’s one of the best known brands in global insurance, with 90% of the FTSE top 100, 93% of Dow Jones firms, and over 80% of Fortune Top 50 European companies and Fortune 500 US companies being insured there.
In an increasingly globalised business, Lloyd’s offer global reach and local depth, operating in more than 200 countries and territories worldwide, with a growing presence in emerging markets such as China, Latin America, India and the Middle East.
Lloyd’s chain of security
The structure of Lloyd’s itself provides a high degree of security, illustrated by the ‘chain of security’ below. Stringent solvency controls ensure that the market meets not only its own high standards, but those of the FSA and other regulatory authorities.
Lloyd’s is a society of members, underwriting insurance in syndicates; each syndicate is required to estimate all its future liabilities and every member must hold assets in trust to meet their own share of those liabilities.
To protect policyholders, premiums are also held in trust, so that liquid assets are available to meet claims and other underwriting liabilities; members must hold additional capital at Lloyd’s as further security. There is also a Central Fund available, which, at the discretion of the Council of Lloyd’s, covers outstanding liabilities should a member default.
For more information about how Lloyd’s operates, go to www.lloyds.com.
