Stockwatch

The week's winners
Allianz up 11.8%
Royal & SunAlliance up 9.3%
AIG up 8.2%

The week's losers
GoshawK down 2.7%
Brit down 2.3%

Numis Securities, the Lloyd's specialist, stuck its head above the parapet and issued a 'buy' recommendation on troubled GoshawK just after the stock sunk by 30% on a profit warning.

Numis seemed particularly reassured on the question of GoshawK's exposure to the collapse of The Accident Group (TAG), saying "resolution of TAG's claims may take time, but should be manageable".

As one of the advisers appointed to undertake a strategic review of the company's options, Numis could be expected to have some useful detail on the question.

On the positive front, it picked out the undoubted strength of the group's Bermuda-based reinsurance business, but investors are remaining cautious. Numis set a target price of 100p, but the stock was still languishing at 71p as this column went to press.

Staying in Lloyd's, little Hardy told the world its plans for next year - including a capacity increase for its Syndicate 382 to £115m from £100m this year.

The syndicate is known for covering helicopters, likely to be an area of aviation insurance set to fare better than the big ticket airlines, where rates started falling back as early as last year.

Lloyd's chairman Lord Levene is currently in China as Tony Blair was pressing the flesh with China's top brass and trying to cement trade relationships.

Lloyd's has applied for a reinsurance branch in the country that would let it deal in local currency - it is at present allowed only to provide offshore capacity in foreign currency.

The market has been full of talk about China in recent weeks, perhaps because it has already been beaten to its goal by Munich Re, which became the first international insurer to be granted a licence on the mainland earlier this month.

Why all the interest? Britain's trade with China is set to grow from last year's $11bn to $15bn within five years and Blair himself forecast that China would be the world's biggest economy within two or three decades.

But with much attention being directed overseas, is the market forgetting to look after its domestic market?

One prospective new entrant into the employers' liability market is known to have taken a long look at Lloyd's - and recently decided to opt instead for the FSA-regulated environment.