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Lloyd’s of London proposed a sweeping reorganization Tuesday intended to pare the losses of its hard-hit individual investors and allow it to retain its role as a powerful force in the insurance industry.
The plan offered the investors a package of aid worth $4.4 billion to help cover $9.3 billion they still owe because of heavy losses on insurance-policy payouts. In return, the investors would have to drop lawsuits contending that Lloyd’s misled them about the risks and mismanaged the business.
The package, which is subject to approval by the investors, is three times more valuable than an offer they rejected last year and would meet a key demand that Lloyd’s put a final value on their losses and end years of financial water torture.
