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6/17, 8:11 AM (Source: TeleTrader)
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Lloyd's takes £650M cover for its extreme loss fund

Lloyd's of London, an insurance and reinsurance market specialist for large risk coverages, has taken out a cover worth £650 million to protect its central fund against future crises, Lloyd's CFO Burkhard Keese stated on Thursday.

In an interview with the Financial Times, Keese explained that £450 million of the arrangement was financed by a cell company backed by JPMorgan Chase & Co, noting that the fund will help Lloyd's "pay out the claims" if "something really, really big happens."

Lloyd's central fund, worth approximately £3 billion, is used when a claim against any of the firm's branches outgrows its capital buffer.

Breaking the News / BU