NEW YORK--Lloyd's Chairman Peter Levene said he never thought the issue of U.S. collateral requirements for reinsurers would last as long as it has, but he hopes a New York regulator's proposal will finally bring change.

Five years ago when he started at Lloyds, he said, there were two major issues to deal with: U.S. collateral rules and securing a license to operate in China--and a quicker resolution was seen for collateralization.

"We finished the Chinese problem two years ago," Mr. Levene, a British lord, said at a press meeting here. He said the market "got nowhere" with U.S. regulators until recently when New York Insurance Superintendent Eric Dinallo proposed to drop most collateral requirements for reinsurers who were judged to have sound financial strength by rating firms.

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