QBE has fallen to second place on the Lloyd’s list that really matters – the capital providers. The Australian insurer, whose Limit Underwriting has held biggest share of the market for several years, has been outgunned in 2002 by ACE. The US insurer lifted its capital in the market to take advantage of rising rates. QBE is keeping its investments to the same level as last year.

ACE has sunk nearly 40% more capital – $2.4 billion – into Lloyd’s business, compared with $1.8 billion for QBE. Limit Underwriting, whose takeover by QBE two years ago earned accolades for CEO Frank O’Halloran, put in $2.03 billion, and associated syndicates committed another $1.5 billion.

Interestingly, while the number of syndicates operating at Lloyd’s has declined, the amount of capital each of the remaining 88 syndicates has available has increased to $395 million.