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Lloyd’s expands its Malaysian reinsurance

Lloyd’s has opened a new reinsurance subsidiary in Labuan, Malaysia, hoping to take advantage of recent fast growth among the Association of South East Asian Nations. Chairman Lord Levene says Lloyd’s Labuan Limited will form an important pillar in the parent company’s strategy for building a greater presence and position in Asia.

“The statistics and the skylines tell us beyond doubt that the world’s economic centre of gravity is moving eastwards,” he said. “As it does so, the size and importance of Asia’s insurance markets is starting to soar.”

Lloyd’s previously operated in Malaysia as a third-tier reinsurer. The new subsidiary is an underwriting manager with its own upgraded licence. “Lloyd’s trading status as a licensed Labuan-based reinsurer will mean that we can work more closely with local brokers and insurers,” Lord Levene said.

He has high expectations for the latest addition to the Lloyd’s market. It earned around $US70 million from its Malaysian reinsurance operations last year. He says it hopes to increase that to US$100 million by 2010 under the new trading arrangements.