The Post-War Adventure

Shortly after every London church merrily pealed its bells for VE Day in 1945, and as the street parties and emotional celebrations began to settle, the Committee of Lloyd’s gathered to hold its first post-war meeting.  Lloyd’s had emerged from this debilitating war with relatively stable results, and there was no reason to believe it could not continue its inexorable growth.

Indeed, as cities began rebuilding and as global trade returned to a form of normal, Lloyd’s was again on the ascent, despite new and formidable competition growing out of New York, Munich and Zurich, as well as at home in the form of large composites.  One change that did occur was the management of claims, where in 1940 with a war raging and the consequent shortage of human resource, the first central office was created in Lloyd’s to handle claims – the Lloyd’s Underwriters Claims Office (LUCO).   

By the late 40s plans were afoot for another new building – the 2nd which would be purpose built.  It would be opened for trading by Her Majesty the Queen in 1958 and became known as the “58 Building”. With more space, more light from enormous arched windows, a fashionable design and modern facilities, the 58 building was to stand the test of time and be used for many years to come, ending life in 2004 after its last occupiers (the Lloyd’s Claims Office) moved out – this writer amongst them.

The 58 Building underwriting room continued to grow and Lloyd’s continued to flourish, with thoughts eventually turning to new accommodation to allow for the still increasing number of syndicates. 

Perhaps seeing the benefits of LUCO, in 1965 the aviators set up their own claims office, the Lloyd’s Aviation Claims Center (LACC). Then the non-mariners followed suit in 1969 with the Lloyd’s Non-Marine Claims Office (LUNCO). Also during this period the first satellite risk “Intelsa 1” was placed (1965), and in terms of social progress Liliana Archibald became the first female broker to enter the Room (1973). 

With change and growth came a desire to add further controls and supervision, and this arrived in the form of the first Council of Lloyds in 1982. By 1986 the third Lloyd’s building had been opened, henceforth the “86 Building” and had a unique design by Richard Rogers & Ptrs. (which still draws comment to this day).

By 1990 the first unified Claims Scheme was agreed upon, and in 1993 the first combined claim bureau was established, the Lloyd’s Claims Office (LCO), which brought together LUCO, LACC, and LUNCO into one unit.

It should be stated, however, whilst there was great optimism and exponential growth during the 1980s, there were also dark clouds on the horizon. In brief, a confluence of events came together in the late 1980s/early 1990s which had major ramifications.  Several specific disasters, (e.g. Piper Alpha, Exxon Valdez), an increase in Accident/Pollution/Health/Asbestosis losses, a number of unexpected court rulings and the infamous LMX Spiral all contributed to the storm. Names ceased, debts rose, litigation multiplied – a major solution was required and, as usual, Lloyd’s innovated.  The plan, accepted by the majority, was two tiered - to make a settlement offer to end all disputes and create a new reinsurance company (Equitas) to arrange for the greatest Reinsurance To Close in history. This 1995 “Reconstruction and Renewal” initiative was broadly successful, with a new regulatory structure, new corporate capital/limited liability to replace unlimited liability of Names, and provide for an enhanced chain of security. By 1998 it was announced by HM Govt that Lloyd’s would fall within the auspices of the then Financial Services Authority, now being the FCA/PRA.

Once again Lloyd’s powered forward, using its long held knack of adapting and innovating. It emerged with stronger supervisory, accounting and regulatory structures, clearer vision, and above all business confidence. 

So having skimmed through this lightning speed history of Lloyd's, maybe you agree that there is every reason to believe that whatever future issues arise, whether they relate to Capital, CATs, military conflict or Covid, Lloyd’s will plan, adapt, innovate and emerge as it seems always to have done on so many occasions.

After all, according to Cuthbert Heath's instruction to his colleague:

"..our job is to get a man out of trouble, that's what he's paid you for."