Cash call fears fade at Lloyd's

LLOYD'S of London will mark a historic break with tradition today as the 314-year-old insurance market moves to annual accounting for the first time. Lloyd's has traditionally accounted for its performance three years in arrears, saying the delay allows it to adjust claims and losses more accurately.

But the numbers are unlikely to make pleasant reading for Lloyd's investors with the market upping its current £1.9bn estimate of net losses on the World Trade Centre disaster.

However, after depositing about $11bn (£7.7bn) with US trusts to cover regulatory requirements for liabilities, it is understood that there will not be a third cash call on Lloyd's Names - private individuals with unlimited liability to the market. Names have already paid out an average of more than £70,000 each to bolster the market's capital following 11 September.

The move to single-year accounting comes as the market faces rising pressure from international competition and calls from new corporate investors for improved accuracy and transparency.

A strategic review of further reforms instigated by chief executive Nick Prettejohn and chairman Sax Riley is ongoing. But a vote which could see Names bought out of the market is scheduled for later this year. Lloyd's is also due to release figures for its 1999 and 2000 years of account today.