Lloyds reform resolution passed
Resolutions which will enable Lloyds of London to change the way it presents its accounts have today been voted through by its the insurance market's members.
Link: Cost of US attacks loom over Lloyd’s
The vote came as fears arose that the changes to the way it does its accounts may threaten future tax breaks for Lloyds members.
Almost 80% of the market’s members voted in favour of the vote, held on a weighted basis. Against the proposals were 20.12% of voters. Of all those eligible to vote, 64% were corporate and 36% was ‘private third party capital,’ made up of individual investors or ‘names.’
The voted resolutions will modernise the 300 year-old market and enable it to face massive losses caused by large insurance claims including those filed follwoing September 11.
Last year, the market reported record losses of £3bn. And losses stemming from the terrorist attacks may increase the deficit, as American Airlines and United Airlines insurers pay out £3.8bn.
The resolutions were passed after a block vote which also includes several controversial changes to corporate governance opposed by members groups of individuals or ‘names’.
The ALM, a members group, urged names to vote against today’s resolutions that would take away the one-member one-vote system and create proportional representation where votes are given in relation to the amount invested.
Lloyd?s Chairman, Sax Riley, said: ‘With 80% backing for these reforms, we now have a decisive mandate to implement our proposals for modernisation. The first stage of our work has concluded; the second stage ? implementation ? is now underway.
‘Lloyd?s has set itself a clear goal – to become more transparent, more efficient, strongly regulated and ultimately, profitable. These reforms provide us with a path to follow.