Lloyd’s Wellington Ups Attack Loss Estimates, Plans Capacity Increase

Wellington Underwriting, a leading operator of a number of Lloyd’s Syndicates, announced that its losses from the September 11 attacks on the U.S. would be around £50 million ($73.5 million), substantially more than it had initially estimated, and that it plans to double its underwriting capacity in 2002.

Julian Avery, Wellington’s CEO, told London’s Financial Times that the situation in the insurance industry had dramatically changed since the attacks. He foresaw greater demand and premium raises, and stated that his company was preparing for both. It plans to increase capacity next year from £500 million ($735 million) to £1 billion ($1.47 billion).