ACE LOOKS TO CUT BACK OPERATIONS AT LLOYD’S

Bermudian p/c insurer and reinsurer ACE Ltd plans to scale back its operations with Lloyd’s, according to Gary Schmalzriedt, CEO of the group’s ACE Overseas General subsidiary. In an interview with Dow Jones Newswires , Mr Schmalzriedt said that the group had “the capability of doing the same business without Lloyd’s”. ACE’s business with the Lime Street market has a capacity of £725m, and represents just under half of the group’s overall European revenues. ACE invested in Lloyd’s in the mid-1990s when it needed a distribution system for its European operation, but acquired its own distribution network four years ago with the purchase of Cigna’s global p/c operations. Mr Schmalzriedt said that ACE would continue to do marine and aviation business with Lloyd’s.