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Lloyd's of London

FOR MORE THAN three centuries, Lloyd's of London evoked sterling images of respectability, dependability, and exclusivity. As an insurer, over the years, Lloyd's developed a reputation for promptly paying all legitimate claims. While Lloyd's had been involved in minor scandals in the past, in the late 1980s, Lloyd's became involved in the worst scandal of its illustrious career. The scandal resulted in hundreds of lost fortunes, totaling approximately $13 billion (£8 billion) and involving almost 2,000 of Lloyd's 34,000 “Names” (what Lloyd's calls its individual investors). The scandal also changed Lloyd's focus from investment by Names to corporate investors, particularly insurance companies from all over the world. By 1996, it was evident that Lloyd's would survive, but some of the Names were not so ...

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