MDMD Le Spark & Lloyd's

[Terrance]

http://www.planetpapers.com/Assets/277.php

The word "privateer" conjures a romantic image in the minds of most
Americans. Tales of battle and bounty pervade the folklore of
privateering, which has become a cherished, if often overlooked part of
our shared heritage. Legends were forged during the battle for American
independence, and these men were understandably glorified as part of the
formation of our national identity. The fact of the matter is that the
vast majority of these men were common opportunists, if noteworthy naval
warriors. 

I. THE HISTORY & STRUCTURE OF WAR RISKS COVER 

http://www.nottingham.ac.uk/law/TEXTHNB.HTM

The War of American Independence subjected Lloyd's to a severe ordeal.
The official entry of France into the war in 1778 saw its hostile
maritime action escalate from privateering and 656 ships were lost in
1779. It needs to be remembered that at the time there was no legal
prohibition on the insurance of enemy vessels, and Lloyd's sustained
heavy losses as a result of British successes as well as British
reverses. The greatest disaster, however, came in August 1780. Two
convoys totalling together some 63 merchantmen and protected only by one
ship of the line and a couple of frigates encountered the combined
fleets of France and Spain. Only eight merchantmen escaped resulting in
losses of œ1.5 million. A considerable number of Lloyd's underwriters
failed to meet their obligations. Nevertheless, Lloyd's survived (as
will be seen, it had no genuine competition) and soon found itself
basking in a period of financial prosperity. "Seldom, if ever, has
Lloyd's been more prosperous or more prominent than it was in the
Napoleonic wars."