Lloyd's Names survive - for moment

THOUSANDS of private investors in Lloyd's who faced being forced out may carry on because the insurance market cannot afford to buy them out.

Under plans to improve efficiency, a team of management consultants suggested that the individuals - or Names - who risk their fortunes in the market should no longer take part.

Though the number of unlimited liability Names has dropped from 35,000 to 3000, they still provide about £3bn of capital to the market each year.

The Association of Lloyd's Members, which represents most private investors, argues that efficiency at Lloyd's would not be improved if they were forced out.

But senior executives, keen to attract more investment from US corporations, believe that the tradition of individuals putting their wealth at risk is a relic.

It is understood, however, that major players in the market are concerned at the cost of buying out the Names, which could run into many millions of pounds.

One senior market professional told Financial Mail: 'I don't think the Names buyout will happen this year. They want to put it off until Lloyd's is making money.'