Lloyd's has decided not to pursue admitted status in the U.S., according to Chief Executive Officer Richard Ward.
In a six-month status report to Lloyd's franchisees, Mr. Ward said that no action will be taken for the time being to obtain admitted status in this country.
"The main reasons for this were the associated regulatory burden, limited franchisee interest and Lloyd's distribution profile within the U.S.," Mr. Ward said.
The market will review measures to improve access to the U.S. excess and surplus lines market for Lloyd's and report on those efforts at the September board meeting.
Lloyd's has been one of the most forceful advocates over the past few years for easing the 100 percent collateral requirements for alien reinsurers to operate in the U.S.
After several years of delay by the National Association of Insurance Commissioners, it appears some movement by the group will take place by year's end when the regulators are due to consider a new ratings proposal that will treat all reinsurers the same regardless of domiciliary country.
But that proposal remains in rudimentary form and much of the U.S. domestic industry still opposes altering the status quo in regard to this issue.
In other developments, Mr. Ward said contributions to the Central Fund will remain at their current level for 2007. "However, if circumstances then allow, we aim to cut the contribution rate in 2008, a year earlier than planned," he said.
The Central Fund is used to pay claims when Lloyd's syndicates and the capital providers are unable to meet their liabilities.
Lloyd's said it is also on track to develop an onshore reinsurance presence in November of this year with trading expected early next year.
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