Lancashire gets $200m credit

Lancashire Holdings has said that it and its wholly owned subsidiary Lancashire Insurance Company Limited have entered into a $200m bi-lateral two-year letter of credit facility with Lloyds TSB Bank.

The letters of credit will be used to support obligations under reinsurance liabilities of Lancashire Insurance Company Limited.

Denise O'Donoghue, corporate finance officer, said: "We are very pleased to have the support of Lloyds TSB, a leading financial institution, for the Lancashire group. This facility boosts the long-term financial flexibility and strength we have committed to our clients."