Last Updated:

2024-04-25 23:24:12

Lloyd's of London

Insurance and reinsurance market in London

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Insurance and reinsurance market in London

Lloyd's of London, established in 1689, operates as a marketplace for underwriters to pool and spread risk. It is governed by the Lloyd's Act 1871 and subsequent Acts of Parliament. The market primarily deals with general insurance and reinsurance, with a focus on marine insurance. Lloyd's has a strong financial foundation and a motto of 'confidence'. As of 2023, it consists of 78 syndicates managed by 51 agencies, writing premiums from around the world.

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1585

Deeds Dating Back to 1585

Some of the deeds in Lloyd's Corporate Archive collection date back to 1585, providing a glimpse into the historical transactions and agreements of that time period.

1686

Earliest reference to Edward Lloyd's coffee house on Tower Street

In 1686, the earliest reference to Edward Lloyd's coffee house on Tower Street was made, which later became the famous meeting place for marine underwriters and the birthplace of Lloyd's of London.

1688

Formation of Lloyd's of London

Lloyd's of London was established in 1688 as a coffee house where ship owners and merchants gathered to insure their ships and cargoes. It later evolved into a prominent insurance and reinsurance marketplace.

1689

Founding of Lloyd's of London

Lloyd's of London was founded by Edward Lloyd at his coffee-house on Tower Street in approximately 1689. It started as a market primarily focused on marine insurance.

1691

Formation of The Society of Lloyd's

In 1691, the small club of marine insurance underwriters relocated to No. 16 Lombard Street, marking the beginning of The Society of Lloyd's. This arrangement continued until 1773 when underwriter John Julius Angerstein acquired two rooms at the Royal Exchange in Cornhill.

1712

Succession of William Newton at Lloyd's Coffee House

After Edward Lloyd's passing in 1712, his son-in-law William Newton took over the management of the Coffee House. This marked a transition in the leadership of the establishment, which continued to play a pivotal role in the maritime and insurance sectors.

1734

Publication of Lloyd's List

After Edward Lloyd's death, 'Lloyd's List' began circulating shipping news, playing a crucial role in the expansion of Lloyd's of London.

1771

Establishment of Lloyd's Corporate Archive Collection

The collection of Lloyd's Corporate Archive dates back to 1771, with some deeds even dating back to 1585. It is freely accessible to the public and provides valuable historical information.

1774

Society of Lloyd's founded at the Royal Exchange

In 1774, the Society of Lloyd's was founded at the Royal Exchange, marking a significant milestone in the history of Lloyd's of London as a prominent insurance market.

1783

Zong massacre trial

The Zong massacre trial took place in 1783, a controversial case involving the slave ship Zong where enslaved Africans were thrown overboard, highlighting the moral and legal issues of the transatlantic slave trade.

1795

John Julius Augerstein Becomes Chairman

In 1795, John Julius Augerstein, later known as 'the Father of Lloyd's,' became the chairman of Lloyd's. He implemented significant organizational changes and efficiencies during his tenure.

1799

Sinking of HMS Lutine

In 1799, the sinking of HMS Lutine occurred, a British warship that faced a tragic fate off the coast of the Netherlands, leading to the famous Lutine Bell being salvaged and housed at Lloyd's of London.

1800

Restrictions in Lloyd's Underwriting Room

In 1800, Lloyd's underwriting room was restricted to merchants, underwriters, insurance brokers, and bankers who needed recommendations from two or more members. A £15 subscription fee was introduced to control overcrowding and filter out 'undesirables'.

1807

Abolition of Slave Trade Monopoly

Lloyd's obtained a monopoly on maritime insurance related to the slave trade and maintained it until the abolition of the slave trade in 1807. This marked the end of Lloyd's involvement in insuring slaves and slave ships.

1811

Lloyd's Dominance in Marine Insurance

By 1811, Lloyd's had become London's sole marine insurance market, thriving during the Napoleonic Wars. The increased insurance rates and rising prices of goods benefited underwriters, leading to significant profits.

1812

Decline of Lloyd's Golden Age

The 1812 battle of Waterloo marked the beginning of a decline in Lloyd's first golden age. The prosperity experienced during the Napoleonic Wars started to diminish, impacting the profitability of the institution.

1814

Decline in Lloyd's Membership

In 1814, Lloyd's had 2,150 subscribers, but by 1843, the membership had dropped to fewer than 1,000, with only 190 professional underwriters remaining.

1824

End of Lloyd's Monopoly on Marine Insurance

In 1824, Lloyd's ostensible monopoly on marine insurance was abolished by decree, allowing other entities to enter the market. This decision led to increased competition and the emergence of new insurers offering fire and life insurance.

1838

Destruction of the Royal Exchange

In 1838, the Royal Exchange was destroyed by fire, leading Lloyd's into temporary offices at South Sea House, Threadneedle Street. The rebuilding of the Royal Exchange in 1844 resulted in the loss of many of Lloyd's early records.

1858

Salvaging of the Lutine bell at Lloyd's

In 1858, the Lutine bell was salvaged at Lloyd's. It was historically rung to announce the fate of ships, with two rings indicating safety and one ring indicating sinking. Today, it is used for ceremonial purposes.

1859

Journalist Describes Underwriting Room at Lloyd's

In 1859, a journalist provided a description of the Underwriting Room at Lloyd's, showcasing the bustling activity and importance of the insurance market.

1871

Lloyd's Act

The Lloyd's Act was passed in 1871, introducing important regulatory changes and establishing the modern framework for the operation of Lloyd's of London as an insurance market.

1885

Introduction of Fire Reinsurance Contract

Cuthbert Heath wrote the first fire reinsurance contract in 1885, diversifying Lloyd's market into 'non-marine' business. This marked the beginning of Heath's efforts to expand Lloyd's offerings beyond traditional marine insurance.

1900

Establishment of Lloyd's of London

Lloyd's of London was established in 1900 and has since become a prominent institution in the insurance industry, known for its unique structure and history.

1906

San Francisco earthquake

The devastating San Francisco earthquake of 1906 had a significant impact on Lloyd's of London, leading to substantial insurance claims and reshaping the global insurance industry.

1909

Sinking of RMS Republic

The sinking of RMS Republic in 1909 was a maritime disaster that affected the Lloyd's market.

1911

Lloyd's Act 1911

The Lloyd's Act 1911 outlined the society's objectives, emphasizing the promotion of its members' interests and the collection and dissemination of information. This act played a significant role in shaping the governance and operations of Lloyd's.

1912-04

Sinking of the Titanic

In April 1912, Lloyd's suffered a significant loss with the sinking of the Titanic, which was insured for £1 million, representing a large portion of the market's capacity. The event is famously recorded in the 1912 'Loss Book' displayed at the Lloyd's building.

1914

Sinking of RMS Empress of Ireland

The sinking of RMS Empress of Ireland in 1914 was another maritime tragedy that affected the Lloyd's market.

1925

Market relocated to its first owned building, at 12 Leadenhall Street

In 1925, the Lloyd's market relocated to its first owned building at 12 Leadenhall Street, signifying a milestone in its history.

1928

Lloyd's First Owned Building

In 1928, Lloyd's moved into its first dedicated building located at 12 Leadenhall Street, designed by Sir Edwin Cooper.

1955

Supported the Montgomery bus boycott

In 1955, Lloyd's supported the Montgomery bus boycott by insuring the civil rights volunteers' carpool fleet, showcasing its involvement in social issues.

1956

Sinking of SS Andrea Doria

The sinking of SS Andrea Doria in 1956 was a maritime disaster that impacted the Lloyd's market.

1957-12

Publication of 'The Origin of Lloyd's'

In December 1957, Nicholas Lane wrote 'The Origin of Lloyd's', delving into the historical roots of the institution and its evolution over time.

1958

Market relocated to new owned building, at 51 Lime Street

In 1958, the Lloyd's market relocated to a new owned building at 51 Lime Street, reflecting its growth and expansion.

1965

Hurricane Betsy

The occurrence of Hurricane Betsy in 1965 had implications for the insurance industry, including Lloyd's market.

1968

Cromer Report

In 1968, Lord Cromer led a secret internal inquiry commissioned by Lloyd's, advocating for the widening of membership to non-market participants and the reduction of capitalization requirements.

1970

Modification of liability policies by Lloyd's and American underwriters

Lloyd's and American underwriters changed their liability policies in 1970 to exclude environmental claims unless they result from a sudden and accidental incident.

1972

Opening of Lloyd's membership to Americans

In 1972, Lloyd's started accepting American members, expanding its membership base and recruiting more individuals.

1973

Ralph Rokeby-Johnson warned about asbestosis impact on Lloyd's

In 1973, Ralph Rokeby-Johnson, a senior underwriter at Lloyd's of London, cautioned his friends about the potential bankruptcy threat posed by asbestosis to the company.

1974

R. W. Sturge Syndicate Buys 'Stop-Loss' Reinsurance for Asbestos Risks

In 1974, underwriter Ralph Rokeby-Johnson of R. W. Sturge syndicate 210 purchased 'stop-loss' reinsurance from Fireman's Fund and Kemper Insurance in the US for pre-1969 asbestos exposures, leading to later complications and the creation of a working party on asbestosis at Lloyd's.

1977

Lloyd's of London reached 10,662 members

In 1977, the number of members in Lloyd's of London reached 10,662, indicating growth and expansion within the insurance market.

1978

Amoco Cadiz disaster

The Amoco Cadiz disaster in 1978 was an environmental catastrophe that likely had repercussions for the insurance industry, including Lloyd's market.

1979

Chairmen of Lloyd's since 1979

List of individuals who have served as chairmen of Lloyd's since 1979.

1980

Fisher Report on New Lloyd's Act

Sir Henry Fisher was commissioned to create a new Lloyd's Act in response to the 'democratic deficit' and lack of regulatory muscle at Lloyd's. The Act of 1982 redefined the business structure, giving external Names a role in the business through a new governing Council.

1981

Merrett Syndicate Reinsurance Voided Due to Asbestos Exposure

In 1981, Pulbrook syndicates 90/334 had reinsurance on its general liability business with Merrett syndicate 418, but in 1990 an arbitration ruling voided the arrangement due to non-disclosure of asbestos exposure extent, leaving Pulbrook Names without cover for their losses.

1982-01

Concealment of Selikoff Report

In January 1982, Lloyd's was informed about the Selikoff Report but chose to conceal its contents from the Market.

1982-02

Challenges in closing 1979 year of account

In February 1982, Auditors Neville Russell and other Lloyd's auditors highlighted the impossibility of closing the 1979 year of account for many syndicates due to unquantifiable asbestos and pollution liabilities, seeking guidance from the Lloyd's Council.

1983

Resignation of Lloyd's Chairman Sir Peter Green

Peter Cameron-Webb and Peter Dixon of PCW Underwriting Agencies were involved in a $60 million fraud through rigged reinsurance transactions, leading to the resignation of Lloyd's chairman Sir Peter Green in 1983. This event marked a significant turning point in Lloyd's history.

1984

Time Capsule Buried in Lloyd's Building

In 1984, a time capsule was buried within the roof of the new Lloyd’s building during a 'topping-out' ceremony led by HM Queen Elizabeth, The Queen Mother. This act symbolized a connection to Lloyd's traditions and history, set in a modern and innovative architectural marvel.

1985

Auditors Keep Outhwaite's 1982 Year Open Due to Asbestos Concerns

In 1985, under Lloyd's three-year accounting rule, auditors kept Richard H. M. Outhwaite's 1982 year open, citing worries about asbestos and pollution liability losses that eventually amounted to hundreds of millions of dollars.

1986

Lloyd's 'General Undertaking' agreement

In 1986, Lloyd's required all Names to sign a new 'General Undertaking' agreement, which included clauses such as 'forum selection' and 'choice of law'. This agreement mandated that all cases must be heard in U.K. courts applying U.K. law, conflicting with existing American Securities law.

1987-02-28

Death of Sasse

Sasse, who was banned from the Lloyd's market in 1985, passed away on February 28, 1987.

1988-07-06

Piper Alpha explosion and the LMX spiral

The Piper Alpha oil rig explosion on July 6, 1988, led to significant losses. The subsequent reinsurance practices, known as the London market excess of loss (LMX) spiral, caused claim values to escalate uncontrollably within the Lloyd's market.

1989

Lloyd's of London LMX Spiral

In 1989, the Lloyd's of London insurance market faced a crisis known as the LMX Spiral, where multiple syndicates became exposed to the same claim multiple times through layers of reinsurance, leading to significant losses for some reinsurers.

1990

Lloyd's of London reports £2.3 billion losses

In 1993, Lloyd's of London declared losses amounting to £2.3 billion for the 1990 year of account. The trend of members leaving Lloyd's continued during this period.

1991

Lloyd's Fraud Exposure

In 1991, Lloyd's of London declared the effects of the fraud, revealing the extent of the financial wrongdoing within the insurance market.

1992

Lloyd's declared

In 1992, Lloyd's made a significant declaration, which impacted its operations and the insurance industry.

1993

Centrewrite Ltd assumes Warrilow's liabilities

In 1993, Centrewrite Ltd took over the 1985 and prior years' liabilities of Warrilow's syndicate 553. It also offered estate protection plans and reinsurance policies to Lloyd's Names.

1994

Corporate members allowed at Lloyd's

Since 1994, Lloyd's has permitted corporate members to participate in the market with limited liability.

1995

Reconstruction and Renewal (R&R) Plan at Lloyd's of London

In 1995, under the leadership of Sir David Rowland and Peter Middleton, Lloyd's of London introduced the ambitious 'Reconstruction and Renewal' plan. The plan aimed to separate the ongoing Lloyd's from its past losses by transferring pre-1993 liabilities to a special vehicle named Equitas at a cost of around $21bn.

1996-08-28

Lloyd's R&R offer deadline

Lloyd's set a deadline of 28 August 1996 for acceptance of their R&R offer, with threats to aggressively pursue Names for their alleged losses if they did not accept.

1996-09-12

Deadline Extension for R&R Acceptance by Lloyd's

Two hours after the judgment, Lloyd's extended the deadline for acceptance of R&R by two weeks to 12 September 1996.

1997-06

Major Enquiry into Lloyd's Deferred

The British Government postponed a major enquiry into Lloyd's until mid-1997, after the next general election, as recommended by the Committee.

1998

Lloyd's of London asbestos and pollution claims

In 1998, Lloyd's of London faced a significant financial crisis due to asbestos and pollution claims. Despite court victories by Names' Action Groups, only a fraction of the total claims were recovered.

2000

Authorization under the Financial Services and Markets Act

In 2000, Lloyd's of London was authorized under the Financial Services and Markets Act, granting it legal permission to operate within the financial services industry.

2001

High combined ratio in 2001

In 2001, Lloyd's reported a 140 per cent combined ratio due to factors like the World Trade Center attack, reserve increases, and deteriorating pricing levels.

2004

Death of Peter Cameron-Webb

Peter Cameron-Webb, one of the individuals involved in the PCW fraud scandal, reportedly passed away in 2004 in a nursing home in California. His death marked the end of a chapter in the aftermath of the Lloyd's scandal.

2005

Impact of 2005 Atlantic hurricane season

The 2005 Atlantic hurricane season, including Hurricane Katrina, led to Lloyd's overall combined ratio reaching 112 per cent due to significant natural catastrophe losses.

2006

Berkshire Hathaway subsidiary National Indemnity Company (NICO) assumes Equitas' assets and liabilities

In 2006, the Berkshire Hathaway subsidiary NICO agreed to take over all of Equitas' assets and liabilities, providing $7bn of new reinsurance cover for future claims payments.

2011

Composition of Names providing capacity at Lloyd's

In 2011, individual Names contributed only 11% of capacity at Lloyd's, while UK-listed and other corporate members provided 30%.

2013

Centrewrite Ltd assumes liabilities of other syndicates

In 2013, Centrewrite Ltd took on the 2001 liabilities of life syndicate 1171, as well as the 1997–1999 years of Crowe syndicate 1204 and the 1999–2001 years of Cotesworth syndicate 535. The liabilities of Crowe and Cotesworth were later novated to Riverstone in 2012.

2014

Decline of Names with Unlimited Liability at Lloyd's

In 2014, Names with unlimited liability provided just 2 per cent of the overall capacity in Lloyd's. As new Names with unlimited liability are not admitted, the importance of individual Names is decreasing as they withdraw, convert, or pass away.

2017

Dissolution of Lioncover

Lioncover, which had assumed the liabilities of PCW and other underwriting agencies, was voluntarily dissolved in 2014. This marked the final chapter in the legacy of the fraud scandal that rocked Lloyd's in the 1980s.

2020

Lloyd’s Apology for Historical Links to Transatlantic Slave Trade

In 2020, Lloyd’s apologized for its historical connections to the transatlantic slave trade and committed to acknowledging this part of its history. Research collaborations were undertaken to understand and contextualize these links, including a partnership with Black Beyond Data at Johns Hopkins University.

2021-11-20

Death of Richard H. M. Outhwaite

After years of litigation related to asbestos exposure, Richard H. M. Outhwaite retired to Guernsey and passed away on November 20, 2021.

2022-12-31

Financial Security of Lloyd's of London

As of December 31, 2022, Lloyd's of London has a strong financial position with a significant chain of security to ensure prompt payment of valid claims. This includes substantial assets at syndicate level and members' funds.

2023-03-23

Lloyd’s Market 2022 Full Year Financial Results Announcement

Lloyd’s announced the market’s 2022 full year financial results on Thursday 23 March 2023. The announcement provided insights into the financial performance and strength ratings of the market.

2024

Lloyd's Copyright

Lloyd's Copyright is registered in 2024, indicating the protection of intellectual property associated with the Lloyd's brand.

End of the Timeline
Lloyd's of London