- The Washington Times - Thursday, September 27, 2001

LONDON (AP) Lloyd's of London stands to pay out $1.9 billion to cover insurance claims from the terrorist attacks at the World Trade Center, the insurance market said yesterday. Lloyd's said it could absorb the costs.
"While a figure of this size will have a significant impact on the Lloyd's market, the market's strong capital base will absorb this loss," said Sax Riley, Lloyd's chairman.
Lloyd's said the losses were spread among 108 syndicates underwriting insurance at Lloyd's, covering all classes of business. It provided no breakdown of the claims faced by the syndicates.
"The long-term impact of the U.S. attacks on the insurance industry is yet to be fully appreciated. Lloyd's is open for business and trading forward," Mr. Riley said. "Clearly there will be a contraction of global insurance capacity which will fuel the premium rate rises we've been seeing since the last quarter of 2000."
Lloyd's is not an insurance company, but describes itself as a brokered market of insurance syndicates that both compete and cooperate with each other. The company traces its origins to the late 17th century, when an insurance market developed at Edward Lloyd's coffee house in London's financial district.

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