In spite of the recent catastrophes of hurricanes Katrina and Rita, the prospects for high net worth investors are still positive, according...

In spite of the recent catastrophes of hurricanes Katrina and Rita, the prospects for high net worth investors are still positive, according to Hampden Agencies, Lloyd's of London’s largest members' agent. The immediate effect of the hurricanes has been a sharp rise in insurance premiums and therefore private investors have committed more capital, not less, to underwriting syndicates for the coming year. The disasters occurred just before Lloyd's annual auction negotiations – the period in the autumn of each year when Names, or private investors, can choose to add to, or lessen, the capital they make available to Lloyd's underwriters for the coming year. This year's auctions saw a historically low number of Names exiting the market together with increasing interest from a significant number of new investors, said Hampden. "Lloyd's first duty is of course to those who have suffered loss. We are still confident that our clients will receive a worthwhile profit when the year of account 2005 closes, due to excellent syndicate selection over a broad range of business, much of which is not exposed to catastrophe," said Nigel Hanbury, chief executive of Hampden Agencies, the managers of more than £1 billion ($1.75 billion) at Lloyd's on behalf of more than 1,000 of private investors. All private investment in Lloyd’s of London is now on a limited liability basis and HNWs are increasingly showing a deeper understanding of how investing at Lloyd's can make money work twice, according to Hampden. This, added to an investment that is uncorrelated to risks elsewhere in an investment portfolio and rising premiums, makes the prospects for HNWs at Lloyd's remain bright, said Hampden.