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Lloyd’s strength fuels capital raising and M&A

18 June 2009

Lloyd’s competitive strength during the financial crisis has led to capital raising and consolidation within the Lloyd’s market, a new report by Aon Benfield has revealed.

Read more: lloyd's M&A capital raising report

Lloyd’s competitive strength during the financial crisis has led to capital raising and consolidation within the Lloyd’s market, a new report by Aon Benfield has revealed.

The report Lloyd’s Update: Capital Additions June 2009 states that pro forma capital of Lloyd’s increased by 5% to £14.2bn in 2008, while January 1 2009 stamp capacity increased by 3% to £16.6bn.

Since December 2008, Lloyd’s managing agents have raised a total of £663m in new equity capital. The latest capital addition was Amlin’s equity placing on June 3, which raised £76m.

Beazley and Catlin...


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Poll

What return on equity do you expect the reinsurance industry to make this year on average?

Negative
33%
0% to 5%
0%
5% to 10%
33%
10% to 15%
17%
More than 15%
17%

Quote

If last year was the year of the cat, then this year could be the year of the debt crisis.

Mike Van Slooten, head of international market analysis at Aon Benfield