Lloyd’s Plans to Raise $218 Million to Defuse Scandal

Lloyd’s of London said Thursday that it plans to raise $218 million to meet claims by investors in its PCW insurance underwriting syndicates in a bid to end one of London’s biggest financial scandals since World War II.

Lloyd’s has taken nearly five years to find a solution to the affair surrounding PCW, whose former management embezzled $62.4 million from some of the richest people in Britain.

At a press conference Thursday, Lloyd’s Chairman Peter N. Miller strongly urged 3,000 PCW members to accept the offer, which would meet part of the $376 million in claims they face following the fraud.

The members have until May 30 to accept the offer.