message to the Bermuda market that Lloyd's is growing in strength and will soon emerge from the difficulties of the past, ready to compete with a new, limited liability source of funding.

Mr. Rowland was speaking at the Bermuda Insurance Symposium luncheon yesterday, spreading a positive message of the bright future for Lloyd's.

The speech comes just two days after he faced an angry gathering of more than 1,600 Names at their annual general meeting Tuesday at the Victorian amphitheatre of London's Royal Festival Hall, selling a 2.8 billion settlement proposal to the Lloyd's litigation. Mr. Rowland left London that night for the Bermuda conference.

At the meeting, although Mr. Rowland tried to get investors to focus on the future, many still wanted answers to allegations of mismanagement and knowledge of the part played by brokers in the troubles and about defects in Lloyd's internal regulations.

Yesterday, Mr. Rowland, facing a more relaxed group, told the Bermuda gathering that he had never viewed the Island as the enemy in the insurance market.

"I don't see it as a market which doesn't cooperate with other markets across the globe,'' he said. "I've never seen Bermuda as a rival threat to London. I don't see it like that at all.

"I see them as a linked part of a global market which is inadequate at the moment to cater to our clients' needs. There is so much more to go for.'' He talked up the need for more capital to chase a large piece of business that remains outstanding.

Mr. Rowland reminded yesterday that Lloyd's lost 8 billion (nearly $13 billion) over a five year period and the rebuilding process has included establishing programmes of reform and attracting new capital.

He said that people forget that a lot of the public outcry emanated from the fact that investors were individual people, whose lives changed, in some cases, dramatically as a result of the difficulties.

Corporate investment to the tune of 1.3 billion has been attracted, and while there were still questions being asked about solvency, a loyal client base produced healthy profits by 1994 and there were good reporting and good underwriting years to come, he said.

He said: "We set out a programme for reform. We set out a programme for attracting new capital, limited liability capital into the Lloyd's market. I think it's little short of miraculous that in two years, we've attracted just about 1.3 billion in that form.'' Mr. Rowland took over as chairman at the beginning of 1993, heading a new administration that went about the task of rebuilding the world's oldest insurance market, amid the rancour over Lloyd's failings.

Just last month, new plans were announced for reconstruction and renewal, bringing the Equitas facility's timetable forward to spring 1996, reinsuring all 1992 and prior year liabilities into that facility.

The move is seen as key to Lloyd's attempt to attract new capital, free of past liabilities, and allow existing Names a settlement of their liabilities.

The 2.8-billion settlement would include 2 billion in the form of debt credits and a further 800 million litigation settlement.

The plan also calls for the releasing of the profits from the good years 1993-95 by spring next year, moving Lloyd's to annual accounting. Lloyd's financial reporting has been done three years in arrears.

A new central fund will provide 300 million security behind new policies written since January 1993. Lloyd's will restructure the basis upon which it trades in the US, in order to meet insurance regulations. It would create a new trust funds for continuing US business and transfer US$500 million to Lloyd's central fund in the US.

Lloyd's has also moved to beef up its regulatory process, he said.

Mr. David Rowland