LLOYD’S LAUNCHES MALAYSIAN UNDERWRITING MANAGER SUBSIDIARY

Lloyd’s is to upgrade its third-tier reinsurance operation in Malaysia to a full subsidiary, Lloyd’s Labuan Ltd. Speaking in Kuala Lumpur today, Lloyd’s chairman Lord Levene said that the London market operation would be launching the subsidiary as an underwriting manager, upgrading its licence. “Lloyd’s trading status as a licensed Labuan-based reinsurer will mean that we can work more closely with local brokers and insurers”, he said. Lloyd’s Malaysian reinsurance business last year generated premiums of about $70m, Lord Levene said, adding that Lloyd’s hoped to be generating premiums of $100m by 2010. He observed that “in the longer term it is difficult to envisage a global insurer being successful without access to Malaysian business”. Lord Levene also confirmed that Lloyd’s was doing some initial work to consider its future role in the Islamic finance sector. “We believe that there are some potentially strong business opportunities in the Retakaful sector, and that Lloyd’s could become an attractive platform for capital providers wishing to invest in this area”, he said.