Lloyd's Capital Structure Overview
Central assets
LLOYD'S
Capital setting is based on a sophisticated understanding of risks and
market conditions
Members' assets
Syndicate SCRs1 (to ultimate)
submitted to Lloyd's
Syndicates' assessments
and modelling of
underlying risks
Syndicate SCRs (to ultimate) agreed
Society
review/discussion/
amendment
RDS and EP2 returns
Business Plans
Other data
35% uplift applied to reach
"Economic Capital" level desired
Allocated to
members
Funds at Lloyd's
(members' assets)
Syndicate risk information input to
Lloyd's Internal Model and other
information regarding "risks" to
Central Fund assessed
Lloyd's SCR and Central
Fund target established
(central assets)
Note: 1) SCR: Solvency Capital Requirement; 2) RDS: Realistic Disaster Scenario;
EP: Exceedance Probability distributions
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