Lloyd's Names call in an old debt
HARD-UP Lloyd's Names are hoping for better news from the other Lloyds - banking giant Lloyds TSB. The bank faces a claim for £169m from UIC Insurance Company, which owes the money to Equitas, the body representing Names.
This offers some cheer to the Names at their agm today, after a grim year in which US asbestosis claims rose 55%.
The origins of the claim date back over 20 years. It matters more to the Names than the bank, valued at £31bn, against £700m for Equitas. UIC was a joint venture sponsored by the late lamented Hill Samuel bank. HS guaranteed UIC shareholders against pre-1982 claims. It is said that HS bought insurance covering this guarantee, but after TSB took it over, the risk was shifted back to it. When Lloyds chairman Sir Brian Pitman found this, he was apparently livid.
Liquidator Ipe Jacob of accountants Grant Thornton has run UIC since 1996. It has liabilities of £254m and assets of £232m - including £169m due from Lloyds TSB.
Jacob submitted a formal claim under the guarantee over two years ago.
He says: 'There is an issue. It is under discussion. I am hopeful it will be settled without litigation.'
Lloyds TSB said UIC's accounts show 'a gross amount. Some is not payable for many years'.
It has made a provision and hopes for 'a satisfactory outcome' from talks with the liquidator.
