Funds at Lloyd's

Each member of Lloyd's is required to provide capital as security to support their total Lloyd's underwriting business. This is known as Funds at Lloyd's. The level of Funds at Lloyd's determines the amount of insurance business a member can underwrite.

The amount of funds required from members will vary, depending on the perceived level of risk in the business which they underwrite. This is known as "enhanced capital requirement" or ECR.

The underlying capital provided by members in support of their underwriting has reduced from £11.3bn in early 2007 to £10.18bn at the start of 2008 to support  underwriting.


Funds at Lloyd's
Graph showing the changing funds at Lloyd's from January 2002 to December 2007.

During each year the aggregate value of Funds at Lloyd's follow a reasonably predictable cycle, as a result of the practical process of adjusting individual members' funds to the changing shape of their underwriting business.

Source for all figures: Lloyd's Market Services, January 2008.

Last updated on 09 Jul 2008