Names

Names are wealthy individuals who have traditionally supported the Lloyds of London insurance market. They underwrite risks, pledging their entire wealth should it be necessary, to meet claims.

Names do not put money into the pot upfront but their assets are at risk, so it came as a shock when a series of disasters and alleged negligence by Lloyds agents in the late 1980's made underwriting unprofitable.

But insurance is a 'cyclical business' with a number of lean years often followed by profitable ones and when the insurance market was opened up to corporate capital, there was no shortage of interested investors.

See also Stocks and Shares Centre

Last Updated: February 2008 © Moneyextra.com

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