Lloyd’s of London has confirmed that Names who lost money on the syndicates exposed to failed Australian insurer HIH have voted to accept its compensation offer.

The amount of money involved in the settlement remains confidential, but a Lloyd’s spokesman told insuranceNEWS.com.au it’s well below the £50 million ($90.4 million) limit payable by the Lloyd’s Members Compensation Scheme.

Lloyd’s made the offer to Cotesworth Action Group members following mediation in November.

The group that comprised Names who lost a reported £44 million ($79.5 million) when their underwriting agent Cotesworth and Co went into liquidation in 2001.

Cotesworth was forced to close because it was unable to find a new primary backer to replace HIH.

In 2008 the action group called on the British Government to reform the Lloyd’s Act after the Members Compensation Panel declined to accept its allegations of fraud and dishonesty in the application for compensation.