GLOBAL BRIEFSPosted On: Aug. 23, 1998 12:00 AM CST
Former Lloyd's of London members agent Anthony Gooda was declared bankrupt in the High Court last week as he is unable to pay Lloyd's claim for L490,000 ($799,435) that Mr. Gooda owes as his premium to close pre-1993 underwriting liabilities into Equitas Ltd. Mr. Gooda, who with Derek Walker ran the infamous Gooda Walker agencies that collapsed in 1991, with losses of more than L500 million ($815.8 million), also owes Lloyd's L1.2 million ($2 million) for debts covered by the central fund, said a Lloyd's spokesman. . . .Lloyd's of London has paid an additional L66 million ($107 million) to Equitas Ltd., the runoff reinsurer set up two years ago to take over Lloyd's pre-1993 liabilities. As part of the Equitas deal, Lloyd's said it would pay up to L100 million ($163 million) in 2002, based on interest rate levels in both the United Kingdom and United States up to 2001. Instead, both Lloyd's and Equitas have agreed to accelerate the payment to remove "the continuing uncertainty and consequent risk" surrounding it. . . .In a bid to finalize the liabilities of troubled syndicate 657, Archer Managing Agents Ltd. underwriter Keith Davies will move to the syndicate after he retires as active underwriter for syndicate 463 at the end of September. Syndicate 657 faces losses up to 98.9% of its L43 million ($67.3 million) stamp for the 1994 underwriting year, which remains open because total losses can't be closely enough calculated. The syndicate, specializing in U.K. liability, including employers liability and professional indemnity business, stopped writing in 1996. Mr. Davies will try to get an "acceptable quotation" to close the syndicate's open years, "taking into account market conditions and the best interest of capital providers," according to a statement issued by Archer. Archer is owned by U.S. insurer Chartwell Re Corp. . . .The U.K. Policyholders Protection Board has paid out L12.3 million ($20.1 million) in its past financial year to policyholders of London United Investments Group P.L.C., parent of the so-called KWELM companies, which collapsed in London in the late 1980s. In the 12 months ending March 31, the PPB paid out a total of L26.6 million ($43.4 million) to policyholders of failed U.K. insurance companies, compared with L33 million ($53.8 million) the previous year. Payments through the 12 months ending March 31 totaling L26.3 million ($42.9 million) went to clients of 17 general business insurers. . . .Net calls and premiums at The Standard Steamship Owners' Protection & Indemnity Assn. (Bermuda) Ltd. fell 14% to $67 million for the year ending Feb. 20, 1998. This was mainly because the club canceled a supplementary call for the 1996-1997 policy year. At the same time, investment income rose 11% to $31 million and the contingency fund increased 2.7% to $150 million. . . .French insurer AXA Group has signaled its intention to expand its Japanese insurance operations following further deregulation of the market last month. It plans to set up a new unit for both personal lines and commercial business next year, according to a statement made by the company. . . . Lloyd's syndicate 861 has written the first Lloyd's risk through the WINconnect service. Placed by broker Sedgwick Ltd., the syndicate, managed by Brockbank Syndicate Management Ltd., wrote the property risk for a real estate investment company through the World Insurance Network and has signed the WIN Interchange Agreement. This means electronically transmitted data is controlled and the business is bound legally. . . .More than L180 billion ($297 billion) in trade was supported by British trade credit insurers last year, according to the Assn. of British Insurers' credit insurance committee. This was 15% higher than in 1996, though premium income was up only 4% to just over L315 million ($520 million).