Editing Lloyd's of London (section)

====Reconstruction and Renewal====
During the mid-1990s the market was forced to restructure. Under the chairmanship of Sir David Rowland and chief executive Peter Middleton, an ambitious plan entitled "Reconstruction and Renewal" (R&R) was produced in 1995, with proposals for separating the ongoing Lloyd's from its past losses. Liabilities for all pre-1993 business (other than life assurance) were to be compulsorily transferred (by RITC) into a special vehicle named [[Equitas]] (which would require the approval of the UK's [[Department of Trade and Industry (United Kingdom)|Department of Trade and Industry]]) at a cost of around $21bn.<ref>{{cite news |last=Eisenhammer |first=John |date=23 October 2011 |title=Equitas day: final act in the Lloyd's nightmare |url=https://www.independent.co.uk/news/business/equitas-day-final-act-in-the-lloyd-s-nightmare-1341264.html |work=The Independent |location= |access-date=28 March 2021}}</ref> 

Many Names faced large bills, but the plan also provided for a settlement of their disputes, a tax on recent profits, and the write-off of nearly $5bn owed in the form of "debt credits", skewed towards those with the worst losses. The plan was debated at length, modified, and eventually strongly supported by the Association of Lloyd's Members (ALM) and most leaders of Names' action groups. New CEO [[Ron Sandler]] was instrumental in its implementation. Money was raised in many ways, including the sale and leaseback of the Lloyd's building, and a tax on future business. Individual offers of settlement were accepted by 95 per cent of Names. The past liabilities on the 1992 and prior years were transferred to Equitas in September 1996, including those under Lioncover and Centrewrite.{{cn|date=September 2023}}

The "recruit to dilute" fraud allegations were heard in an eight-month trial in 2000 in the case ''Sir William Jaffray & Ors v. The Society of Lloyd's'' and were rejected by the judge; an appeal was heard in 2002 and unanimously rejected. On each occasion the allegation that there had been a policy to recruit to dilute was dismissed and Names were urged to settle; however, at first instance the judge described the Names as "the innocent victims [...] of staggering incompetence" and the appeal court found that representations that Lloyd's had a rigorous auditing system were false and strongly hinted that one of Lloyd's main witnesses, former chairman Murray Lawrence, had lied in his testimony.<ref>[https://www.bailii.org/ew/cases/EWCA/Civ/2002/1101.html ''Jaffray v. Soc'y of Lloyds''] [2002] EWCA Civ 1101.</ref>

Lloyd's then instituted some major structural changes: corporate members with limited liability were permitted to join and underwrite insurance; no new unlimited-liability Names were allowed to join (although a few hundred existing ones remained); financial requirements for underwriting were changed, to prevent excess underwriting that was not backed by liquid assets; and market oversight significantly increased. Lloyd's rebounded and started to thrive again after the catastrophic losses arising out of the [[September 11 attacks|World Trade Center attack]], but it faced increased competition from newly-created companies in [[Bermuda]] and other markets.

In 2006 the [[Berkshire Hathaway]] subsidiary [[National Indemnity Company]] (NICO) agreed to assume all of Equitas' assets and liabilities, providing $7bn of new reinsurance cover for future claims payments in addition to the $8.7bn of existing reserves within Equitas.<ref>{{Cite web|url=http://www.equitas.co.uk/files/Names_Info_Doc_1206.pdf|title=EQUITAS LIMITED AGREEMENT WITH NATIONAL INDEMNITY COMPANY|archive-url=https://web.archive.org/web/20190215050413/http://www.equitas.co.uk/files/Names_Info_Doc_1206.pdf|archive-date=15 February 2019}}</ref> The transfer (in two phases between 2007 and 2009) represented "finality" under English law for all affected Names, who now faced "no further liability whatsoever" to the pre-1993 losses.<ref>{{cite web|url=http://www.equitas.co.uk/files/Equitas-LetterToNames1July2009.pdf|title=Finality under English Law|author=HA Stevenson |date=1 July 2009|website=Equitas}}</ref>

In 2020, following the [[George Floyd protests]], Lloyd's issued a statement, apologising "for the role played by the Lloyd's market in the 18th and 19th century slave trade – an appalling and shameful period of English history, as well as our own".<ref>{{Cite web |date=10 June 2020 |title=Building an inclusive Lloyd's marketplace |url=https://www.lloyds.com/news-and-risk-insight/news/lloyds-news/2020/06/building-an-inclusive-lloyds-marketplace |archive-url=https://web.archive.org/web/20200707193204/https://www.lloyds.com/news-and-risk-insight/news/lloyds-news/2020/06/building-an-inclusive-lloyds-marketplace |url-status=dead |archive-date=7 July 2020 |access-date=29 October 2020 |website=www.lloyds.com}}</ref><ref name="KahnJ">{{Cite news |last=Kahn |first=Jeremy |date=18 June 2020 |title=George Floyd protests force Britain to reckon with its role in slavery, leading some companies to pay reparations |language=en |work=Fortune |url=https://fortune.com/2020/06/18/george-floyd-protests-uk-slavery-reparations/ |access-date=29 October 2020}}</ref><ref name=HoltonK>{{Cite news |last1=Faulconbridge |first1=Guy  |last2=Holton |first2=Kate |date=18 June 2020 |title=Lloyd's of London to pay for 'shameful' Atlantic slave trade role |language=en |work=Reuters |url=https://www.reuters.com/article/us-minneapolis-police-protests-lloydsofl-idUSKBN23P0SM |access-date=29 October 2020}}</ref><ref>{{Cite news |last=Faulconbridge |first=Guy |date=18 June 2020 |title=Explainer: London faces up to former role insuring Atlantic slave trade |language=en |work=Reuters |url=https://www.reuters.com/article/us-minneapolis-police-protests-lloydsofl-idUSKBN23P2US |access-date=29 October 2020}}</ref>