LLOYD'S SYNDICATE TO DECIDE ACTION ON $190 MILLION LOSS

LLOYD'S SYNDICATE TO DECIDE ACTION ON $190 MILLION LOSS

Members of a Lloyd's of London insurance syndicate facing losses of up to $190 million on U.S. liability business are to meet Tuesday to consider their response to a call on their personal resources to help meet the claims.

The 1,250 members, or wealthy Names who provide the financial backing for Lloyd's Syndicate 553, face the losses on long-term business, including asbestosis and toxic waste, written in the United States in the early 1980s.A member of the syndicate, Tom Benyon, a former chairman of the Association of Lloyd's Members, is rallying support for the meeting, during which one of the issues will be management responsibility for the losses. One of the criticisms is believed to be the failure of Lloyd's self-policing measures to detect that the syndicate has allegedly chalked up losses equivalent more than twice its 45 million ($85 million) underwriting limit.

Mr. Benyon, a former conservative member of Parliament, has said there is a strong mood of discontent about the way the syndicate's affairs have been handled.

He believes members' agents, who oversees Names' interests in Lloyd's, should have realized the problems of the syndicate exceeding capacity and under-reserving.

Last year members of Syndicate 553 were called upon to contribute 9 million to meet claims, and they are expecting soon to be called upon to provide an additional 31.5 million.

Under Lloyd's membership rules Names face unlimited liability meet potential claims on the syndicates to which they belong.