Private investors backing Lloyd's insurance syndicates selected by Hampden Agencies Limited have benefited from a total return on capital of 62.8%, the members' agent said today.
The largest Lloyd's members' agent said the results of the results were “further evidence of the strength of the Lloyd's recovery”.
Hampden's 'MAPA 7200' (Members' Agent Pooling Arrangement No.7200) is one of the firm's unit trust-like vehicles for clients who leave all their investment decisions to their professional manager.
It expects its mainstream MAPA 7200's return in 2003 on underwriting capacity of 25.1% will be at the top end of the industry-wide results.
“This gain is the equivalent of 62.8% on capital employed because investors may leverage their limited liability commitments by up to 2.5 times under Lloyd's regulations which are governed by the FSA,” it said.
Nigel Hanbury, chief executive of Hampden Agencies, said: "2003 was an outstanding year for Lloyd's private investors; Lloyd's far out-stripped the stock market. We have seen a marked increase in interest and enquiries from family offices, professional advisers and hedge fund managers. Lloyd's is a hedge to stock markets because it is an unique and un-correlated asset class."
Because investors at Lloyd's are able to pledge assets rather than being required to invest cash, their pledged investments over the same period may also have generated a second and separate return. This is the unique "double use of assets" advantage of investing at Lloyd's, said Hampden.
The results just published are from 2003, in line with Lloyd's three-year accounting system.
