By allocating capital support to each syndicate each year, the members govern the amount of business that each syndicate can underwrite each year - the syndicate capacity. The total capacity of the Lloyd's market in any given year is the aggregate capacity of all syndicates for that year.
The capacity of the Lloyd's of London insurance market has reduced in 2008 to £15.95 billion. This represents a decrease of 0.9% on 2007 opening capacity of £16.1 billion.
Suppliers of Lloyd's capital 1998-2008
Lloyd's capital base remains diverse with no single capital provider providing more than 7% of the Market's total capacity. There is considerable geographic and industry diversity among capital suppliers as the chart below shows.
Having remained stable at around £10bn for the period 1995-2000, the capacity of the Lloyd's market rose significantly during the period 2001-2004. In 2005 capacity reduced, but the impact of the US hurricane season resulted in an increase in 2006 and 2007, although 2008 has seen a slight reduction as markets soften.
Membership of Lloyd's 1998-2008
In 2008 94.2% of capacity is corporate, compared to 93.1% in 2007.
Capacity data in each year is at start of year.
Source for all figures: Lloyd's Market Services, January 2008
