The capital amount required to join a Lloyd’s syndicate has been doubled to about $150,000, a move widely interpreted as a signal that the market wants more corporate investors and fewer private individuals, or “Names”.

The Prudential Supervision Committee of the Lloyd’s Regulatory Board said the new increase does not apply to existing associates.

The decision seems to have been accepted by the market’s Names, with Patrick Moore, deputy chairman of the Australian Association of Lloyd’s Members saying the move is “obviously a move to discourage the smaller Names at Lloyd’s. This and the recent collapses of HIH and Independent prove that substantial capital is a must for market participants.” 

The losses of the 1980’s led to bankruptcies, suicides and a long period of litigation from affected Names, and Lloyd’s is now actively seeking capital from the corporate market, which is a lot less messy.

John Henderson, Head of the United Names Organisation’s legal team in London, said Lloyd’s is telling people that is there is not a lot of mileage in being a private Name.  “The future definitely lies with the corporates,” he said.