Lloyd’s:THE WORLD’S SPECIALIST INSURANCE MARKET

THE HOME OF INTERNAtIONAL INSURANCEFrom oil rigs to Ming vases,nothing surprises us.

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THE HOME OF INTERNAtIONAL INSURANCE

• From origins in marine insurance, Lloyd’s has been covering risks for more than 300 years

• Lloyd’s is a market where businesses buy and sell insurance

• What we protect ranges from offices and factories to jewellery, aircraft and the new World Trade Center

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WHY LLOYD’S?

You’re in experienced hands: our market brings together an exceptional level of knowledge and underwriting experience

You’re protected: the Corporation of Lloyd’s monitors the market’s performance and approves the capital base for the payment of valid claims by the market

You’re connected: the Lloyd’s market can be accessed from many places in the world

How the market worksGetting covered

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The policyholder

The brokers

The coverholders

Members

Managingagents

Syndicates

Corporation of Lloyd’s

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Since your risk is large and complex,it may mean several different underwriters sharing the risk. This means you can get cover for risks that might otherwise be uninsurable.

Imagine that you have several factories to protect, with specific and complex needs

Your broker visits Lloyd’s and goes to the Underwriting Room. Here he can meet interested underwriters face to face and ‘shop around’ to negotiate the best package 

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HOW YOUR RISK IS WRITTEN• Once he has struck a deal, the broker

returns to you for approval

• In the event of a claim, you simply go back to your broker to set the process in motion

You go to your broker. He advises that Lloyd’s has the expertise for this risk as well as the robust capital structure from which valid claims can be paid

Since your risk is large and complex,it may mean several different underwriters sharing the risk. This means you can get cover for very large and complex risks

WELCOMINGTHE WORLDLloyd’s covers risks fromaround the globe

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LLOYD’S can be accessed from 200+ countries and Territories worldwide

Source: Lloyd’s Annual Report 2012. All figures as at 31 December 2012

LLOYD’S FINANCIAL STRENGTH Our Chain of Securityand independent ratings

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LLOYD’S FINANCIAL STRENGTH

• One of many things that makes Lloyd’s different: the Chain of Security

• It provides the financial strength that backs all insurance policies writtenat Lloyd’s

• It means every policyholder can have full confidence that all valid claimswill be paid

11 Figures correct as at December 2012

OUR CHAIN OF SECURITY

• LINK ONE:SYNDICATE ASSETS(£41,126m/US$67,035m/€50,585m)

• Before writing business, a syndicatemust put up funds to cover their own share of claims

• These funds are the first port of callwhen paying policyholder claims

12 Figures correct as at December 2012

• LINK TWO:MEMBERS’ FUNDS AT LLOYD’S(£15,660m/US$25,526m/€19,262m)

• Every member (corporate or individual) must provide sufficient capital to support their underwriting

• These funds are held in trust for the benefit of policyholders and used only if the syndicate assets have been exhausted

OUR CHAIN OF SECURITY

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OUR CHAIN OF SECURITY

• LINK THREE:LLOYD’S CENTRAL ASSETS (£2,485m/US$4,051m/€3,057m)

• The Central Assets are available, at the discretion of the Council of Lloyd’s, to meet any valid claim that cannot be met from the resources of any member further up the chain

13 Figures correct as at December 2012

INDEPENDENTLY ASSESSEDIn the eyes of leading ratings agencies,Lloyd’s is viewed as enjoying robust capital reserves:

• Standard and Poor’s: ‘A+’ (strong)• Fitch Ratings: ‘A+’ (strong)• A.M. Best: ‘A’ (excellent)

Lloyd’s Annual Report 201114

FIT FORTHE FUTURECybercrime and beyond

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Fit for the future

We write cover for 21st century risks

Cybercrime: we’re a leading provider of data-breach and data-security insurance

Carbon Credits: we write cover to protect against a drop in the value of carbon credits caused by changesin legislation

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Fit for the future

We create processes for 21st

century risks

The Exchange: secure andinstant electronic communicationbetween brokers and underwriters

Claims processes: deliveredan average of 39% reductionin transaction times for 16,000claims in 2011

Lloyd’s:Your riskManagement,managedIn summary

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Why lloyd’s?

Lloyd’s means:

• Expertise: a proud 300-year track record, but with a total focus on the risks of the future

• Strength: our Chain of Security is designed to ensure that all validclaims will be paid

• Accessibility: we’re open for business in 200+ countriesand territories

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WE LOOK FORWARDTO WORKING WITH YOU

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WHO’S WHO?

Policyholders require insurance coverAll over the world, businesses, organisations, individuals and indeed other insurers need insurance to protect themselves against risk.They brief either a broker or coverholder on whatthey need.

Brokers place risksMost risks at Lloyd’s are placed by brokers. Their activities are governed by their country’s own regulator but they must also meet Lloyd’s own eligibility criteria.

Coverholders place risksAlternatively, clients can go to local coverholders. They work on behalf of a syndicate, and are authorised by a managing agent to write a certain amount of international business for the syndicate.

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WHO’S WHO?

Members provide the capitalMembers provide the capital to support underwriting in the Lloyd’s market. They include some of the world’s largest insurance companies, listed companies, individuals and limited partnerships.

Syndicates write the insurance risksSyndicates accept the risks on behalf of the members. Their underwriters negotiate with brokers to arrive at the costs, terms and conditions of an insurance agreement.

Managing agents manage the syndicatesThese companies are set up by members to manage one or more syndicates. Managing agents employ the underwriting staff and handle the day-to-day running of a syndicate.

Corporation of Lloyd’s supports the marketThe Corporation owns the Lloyd’s brand and provides the infrastructure and licences for the market to operate internationally. It reviews and approves business plans, and manages the Central Fund – the capital that provides that all claims can be paid.

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