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HMRC internal manual

General Insurance Manual

The UK insurance market: Lloyd's

Lloyd’s (often still referred to as Lloyd’s of London, though that is no longer the official title) is not an insurance company, but an association of underwriters. Until 1994 these were all individuals underwriting on an unlimited liability basis, but corporate groups have now come to supply most of the capital in the Lloyd’s market, and the majority of private members now write through vehicles that limit their liability.

The underwriting members of Lloyd’s, or names, are each insurers carrying on business on their own account; but their business must be accepted and managed by professional underwriting undertakings known as managing agents who manage the ‘syndicates’ to which the names belong. Private names are placed on syndicates by advisers known as members’ agents. Corporate group capital may alternatively be placed using what is known as a Lloyd’s adviser, and many corporate groups now use an integrated model in which the capital provider and managing agent are associated – the ‘integrated Lloyd’s vehicle’.

A managing agent is a person who is authorised by Lloyd’s to accept insurance risks on behalf of its underwriting (investing) members. The managing agent employs trained underwriters and other professional staff.

Syndicate accounts and the returns of corporate members of Lloyd’s are dealt with by the Large Business Service (Insurance). Individual members of Lloyd’s are dealt with in West Yorkshire Personal Tax Unit. Further detailed guidance on Lloyd’s and the taxation of its underwriters may be found in HMRC’s Lloyd’s Manual.