Staveley Head Backs Lloyds Van Insurance

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Staveley Head are a leading UK insurance broker and have given their backing to Lloyd's insurance.

your investment can go down as well as up

Lloyds of London, arguably the largest and most prestigious insurance institution in the world, has had a torrid time in recent years. The deluge of asbestosis claims against the underwriting syndicates some twenty years ago, left the "names" reeling and led to an exodus of many of those "names", now called corporate members, from the Lloyds insurance market when a protracted legal battle ensued.

Since that time Lloyds has substantially restructured, and appears to be prepared to accommodate the rigours of the current global financial crisis. Whilst most sectors of the financial services industry have posted record losses in recent months, and are forecasting even more dismal results for 2009, the General Insurance market is far more optimistic.

Whilst it is generally accepted that the number of vehicles requiring road risks insurance cover will reduce in 2009, as already evidenced by falling new vehicle sales and reduced business output across the commercial spectrum, it is anticipated that insurance premiums will increase substantially in the forthcoming months. And not only are road risk premiums set to rise, it is expected that there will be an increase in excess of 10% in the premiums for most commercial risks.

This possibility is proving very attractive for private equity firms, and other investors, who are finding their returns diminishing in other financial sectors. A hardening insurance market is always good news for investors, and provides the extra underwriting capital required for solvency consolidation and expansion.

Lloyds syndicates are experiencing a resurgence of interest and corporate investment. Overseas investment is also being encouraged as a result of the weak pound which is an additional benefit for foreign investors. It is widely believed within Lloyds that an increase in premium rates combined with the dollar strengthening against the pound will lead to more capacity for the syndicates in both 2009 and 2010.

A spokesman for Staveley Head Limited, who have several van insurance and truck insurance schemes underwritten by Lloyd's syndicates, said "This is good news all round for both Lloyd's of London and the commercial vehicle insurance market as a whole. 2009 should see rates harden, and insurers return to an underwriting profit."

However, the old adage that "your investment can go down as well as up" still applies. Lloyds of London, as much as any other insurer, is subject to the possibility of catastrophe claims -- and the big ones can hurt.

For more information please contact Staveley Head on 0845 017 9991 or email quotes (at) staveleyhead.com

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Paul Delaney
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