July 2002/1

Jeremy Pinchin, Lloyd’s Special Counsel for September 11, encouraged market executives when he confirmed that Lloyd’s exposures to the World Trade Center have not deteriorated.

Syndicate 138 is set to close or merge with another syndicate after its corporate backer SAFECO has decided to exit Lloyd’s. Jonathan Gale, Syndicate 138 underwriter, has already resigned from the syndicate less than a year after being appointed as Ralph

Trenwick has instigated arbitration proceedings to force Swiss Re subsidiary, European Re, into paying $55mn under a disputed financial contract known as a Catastrophe Equity Put or CatEPut.

Munich Re, the world's second largest reinsurer, increased its WTC loss reserves by a further $500mn to €2.7bn sparking a collapse in the value of European stocks.

Bermudian insurer plans to reduce its Lloyd’s capacity by almost a third to £652mn. ACE, one of the largest capital providers in Lloyd’s, is considering reducing its 2003 capacity by almost £300mn to £652mn.