• Most Popular
  • Most Shared

Lloyd's of London says safe from credit crunch

Mon Nov 3, 2008 10:45am EST

ABU DHABI, Nov 3 (Reuters) - Nothing catastrophic will happen to Lloyd's of London as a result of the credit crunch because its investment policy is extremely conservative, the insurance market's chairman said on Monday.

Bonds

The Bank of England flagged up possible risks to the insurance sector in its recent Financial Stability report as the credit crisis spreads beyond hard-hit banks.

"What I do know is that I can say that nothing disastrous is going to happen," Lloyd's chairman, Peter Levene, said while taking part in a British trade delegation visit to the Gulf States.

"Our investment policy now is unbelievably conservative. Almost all our capital is either in cash, or AAA-rated government bonds."

"As far as we are concerned the credit crunch itself has had no significant effect except in the longer term and the wider sense that it may affect the economy generally." (Reporting by Matt Falloon; Editing by Greg Mahlich)

Bonds


More from Reuters

Photo

Accused 9/11 plotters may face NY "Guantanamo"

NEW YORK (Reuters) - If the men accused of plotting the September 11 attacks wonder what conditions they might face when they are moved to New York from Guantanamo Bay for trial, they can expect solitary confinement, 23-hour-a-day lockdowns, constant video surveillance and almost no visitors.

» More Top News
Traders in the oil options pit work at the New York Mercantile Exchange, September 9, 2008. REUTERS/Chip East
Analysis:

"More assumptions, more risk"

New oil and gas reserve rules were supposed to improve transparency, but the unforeseen consequences of the regulations could add a layer of uncertainty for investors.  Full Article 

regulatory news
The sun sets over the Mackenzie Delta near Inuvik, Northwest Territories November 11, 2009. Credit: REUTERS/Jeffrey Jones

An Arctic economy in limbo

Beset by political and economic setbacks, one of the world's biggest pipeline projects is on hold, and it's unclear if the project will ever break ground.  Full Article 

Green Business