LLOYDS OF LONDON

Lloyd's of London the world famous and most important insurer market .

It dates from 1688. Edward Lloyd opened a coffee house where seafarers, merchants, bankers and underwriters could meet and drank their coffee, at the same time done their businesses.

The underwriter accepted insurance of their ships for a payment of a premium.

In 1776 they formed an association and moved to the Royal Exchange. Over the years it expanded and the company has now moved to its own building.

In 1871 Lloyds established its own act and self-regulation powers. Ever since Lloyds has the responsibility for the control, supervision of its members and the market itself.

Lloyds started with marine insurance and when a ship went down it rang the huge ship bell which hang in the middle of the hall. It was run till 1970. It  kept its marine insurance but expanded into other insurance businesses.

During the late 1980 and early 1990 a number of big disasters in a number  places in the world wiped out the profit of member syndicates. A great number of names went bankrupt who invested in Lloyds.
Today Lloyds of London will not ask its members for extra capital even so the pound drop to an all time low for 31-years.

The rules are that market insurers, or underwriters belong to bigger management agencies and are obliged to deposit money . It is a communal pot called Funds at Lloyds (FAL). It is a security for their underwriters.

Lloyds said: "Overall, the decision to leave the EU has no impact on Lloyd's financial strength and S&P affirmed Lloyd's A+ rating in the same week as the referendum vote."

Lloyds had to ask managing agents to increase their capital in 2008 because the dollar fell 30 per cent.

Today, Lloyd globalised their business and 50 per cent of FAL is in dollars.