Lloyd's has announced a £152m settlement with six insurers for recovery of the sums claimed under a five-year insurance contract to support the new Central Fund.
The insurance market saved itself from long-term arbitration proceedings which were likely to end up in costly defeat. In the worst case scenario Lloyd's said it could have ended up paying out £393m.
The dispute with Swiss Re, St Paul, Hannover Re, XL Re, Federal Insurance Company and Employers Re centres around the new Central Fund.
Lloyd's began proceedings in 2004 when it sought to recover funds under a five-year insurance contract written to support the new central fund. The arbitration hearings, it said today, will now be discontinued.
The terms of the settlement agreement are confidential.
Lloyd's director and general counsel Sean McGovern said the settlement would “draw a line and resolve the uncertainties of this dispute.”
