Name-Saving Plan

"IN A COMPETITIVE WORLD," ACKNOWLEDGED David Rowland, chairman of Lloyd's of London, "we have performed very poorly." That was hardly news for the nearly 20,000 "Names," Lloyd's investors who in some instances have lost fortunes as the 300-year-old insurance firm bled $9.4 billion in red ink over a four- year period. Losses for 1990, to be reported in June, could be a record $4.4 billion. What was news was the unveiling of Lloyd's first ever business plan -- a 70-page overhaul designed to attract new investors and allow companies, starting next year, to become members for the first time, supplementing the Names who take on unlimited liability. Also proposed: 30% cost reductions to streamline operations, and a centrally run company using set-aside reserves to reinsure policies that were underwritten before 1986. This device is designed to protect new investors from an expected tide of claims on old U.S. asbestos- and pollution-related cases. Otherwise the plan did little to pacify thousands of angry, financially ruined Names in litigation over losses they believe were caused by negligence, incompetence and even fraud rather than bad luck. They say they will fight on, plan or not.