This paper is partly descriptive, partly analytical, and covers the following aspects:

a description of the market in general;

a brief description of the organization of Lloyd's;

currencies and exchange rates;

calculation of reserves;

taxation;

underwriting; and

accumulation of risk.

§§ 1 and 2 and the earlier paragraphs of § 3 convey information regarding the market that will be well known to actuaries practising in this field and may be passed over without loss. They are added in an attempt to convey a picture of the type of operation that results within an office concentrating on reinsurance business, as against looking at reinsurance in its peripheral effect on a direct writing office.