LLOYD’S AGREES ON FUNDS

Lloyd’s of London reached an agreement with the New York Insurance Department in conjunction with the National Association of Insurance Commissioners (NAIC) on the funds required for its “Credit for Reinsurance” trust funds for Nov. 15, 2001. Lloyd’s will deposit funds equaling 60 percent of the claims to be made by U.S. cedants arising from the Sept. 11 attacks. The balance to bring the funds up to 100 percent of the reinsurance liabilities will be paid by the end of March 2002. Lloyd’s Chairman Sax Riley commented that the company is very pleased to have this matter clarified, noting this has always been a question of short-term liquidity, not solvency.