After much pressure from influential Names Lloyd’s has decided to scrap its plan to buy out wealthy individual investors. While the current Names seem to have won, Lloyd’s Chairman Sax Riley said that current private investors are welcome to stay aboard, but from the beginning of next year there will be no new Names with unlimited liability.

Mr Riley said the issue is not about private capital. “We still hold the view that the concept of unlimited liability is no longer viable is this era of increasing risk.”

Introduced as a way to cut back around $6 billion in net losses from the World Trade Center attacks, the plan would have seen Lloyd’s buy out the 2,500-odd Names if they agreed to give up unlimited liability.