Lloyd's - Lloyd's buys back £102m of its debt securities

Lloyd’s, the world’s leading specialist insurance market, announced today that it will repurchase the local currency equivalent of £102 million of its outstanding debt securities, following its invitation to holders to submit offers to sell their holdings. Lloyd’s had offered to purchase up to £100m of the securities.

Lloyd's will purchase a principal amount of £59,631,000 of its Perpetual Subordinated Capital Securities at a cost of £35,778,600 and a principal amount of €47,315,000 of its Subordinated Notes maturing in 2024 at a cost of €33,120,500. Lloyd's will additionally pay accrued interest on the purchased securities.

Following these purchases, £440,369,000 principal amount of the Perpetual Subordinated Capital Securities and €252,685,000 of the Subordinated Notes maturing in 2024 will remain outstanding. Lloyd's will not purchase any of its sterling Subordinated Notes maturing in 2025 as a result of the invitation and the outstanding principal amount of these securities will remain at £300,000,000.

Luke Savage, Lloyd’s Finance Director, said: “The decision to buy back some of our debt was a prudent move, which took advantage of our strong capital position, favourable market conditions, and perceived interest from holders of our debt.”

Notes to Editors:

In aggregate, the value of Lloyd’s central assets, excluding the callable layer and the liability in respect of the subordinated debt and securities, amounted to £2,072m at December 2008. Central assets include the assets of the Central Fund and the other assets of the Corporation.

Lloyd's has three outstanding debt issues: €300,000,000 5.625% Fixed/Floating Rate Subordinated Notes due 2024 (ISIN: XS0205875395), £300,000,000 6.875% Subordinated Notes due 2025 (ISIN: XS0205875049) and £500,000,000 Perpetual Subordinated Capital Securities (ISIN: XS0307055995).

Full details of the results of the invitation to offer are available at:

www.lloyds.com/subordinateddebt