Lloyd’s preparing for euro collapse

Specialist insurance market Lloyd’s of London is making preparations for the possibility of the euro breaking up, its chief executive has said.

In an interview with the Sunday Telegraph, Lloyd’s Richard Ward said it needed to “prepare for that eventuality”.

The comments from a leading financial figure come with Greece facing new elections next month.

The last round of voting led to an impasse among politicians who failed to agree a coalition government.

It has led to increasing fears Greece will be forced to exit the single currency, and Ward said in that circumstance Lloyd’s would settle claims in multiple currencies.

Ward is one of the first bosses of a large UK business to admit he is planning for the end of the euro.

He added: “We’ve got multi-currency functionality and we would switch to multi-currency settlement if the Greeks abandoned the euro and started using the drachma again.

“I don’t think that if Greece exited the euro it would lead to the collapse of the eurozone, but what we need to do is prepare for that eventuality.”

 

This article was first published on Investment Week


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