HL Deb 25 July 1994 vol 557 c60WA
Lord Napier and Ettrick

asked Her Majesty's Government:

Whether they are satisfied that Lloyd's of London are solvent and are therefore not trading illegally.

The Minister of State, Department of Social Security (Lord Mackay of Ardbrecknish)

The statement and certificates demonstrating Lloyd's solvency for the year ended December 1992, which are required by Part IV of the Insurance Companies Act 1982, were received by my right honourable friend the President of the Board of Trade at the end of August 1993. The corresponding documentation in respect of the year ended December 1993 should be delivered this August. The Government expect it to demonstrate Lloyd's continued solvency for the year ended December 1993.

Lord Marlesford

asked Her Majesty's Government:

Whether, in deciding whether or not Lloyd's of London is solvent at the end of August 1994, the Department of Trade and Industry will take into account solely the intrinsic factors relating to technical solvency or whether they also take into account any other factors, such as the national interests or the reputation of the City of London; and if so, under what statutory authority.

Lord Mackay of Ardbrecknish

The solvency requirements in respect of Lloyd's are laid down in Part IV of the Insurance Companies Act 1932. Whether or not the required minimum margin of solvency is exceeded is a matter of numerical calculation rather than judgment. It is not therefore possible to take subjective considerations into account.