Lloyd's needs Ł1.5bn more to cover reinsurance claims

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Lloyd's of London faces an additional Ł1.5bn strain on its liquidity following the September 11 attacks on the US. US regulators yesterday reversed a relaxation of the rules governing how much of its funds the UK-based insurance market must deposit in America to cover claims for re-insurance. The US National Association of Insurance Commissioners insisted Lloyd's would have to deposit funds equivalent to 100 per cent of the gross liabilities arising from its US reinsurance claims relating to the attacks on the World Trade Center, estimated at Ł3.75bn.