Insurance News

30/09/2011   Lloyd's of London Losses

Disastrous year: Lloyd's of London plunges £697m into red 

Published Date: 22 September 2011

THE MOST expensive six months on record for the insurance industry has seen Lloyd's of London crash to a £697 million loss.

The specialist insurance market, which is made up of 88 underwriting syndicates, incurred £6.7 billion in claims after major natural disasters in Australia, Japan, New Zealand and the United States.

Lloyd's half-year loss compared to a £628m profit during the same period last year, and the firm said 2011 was turning out to be the second most expensive year in history for insurers.

However, it insisted that its own claims were being met without any call on its central fund - its fund of last resort.

Chief executive Richard Ward said: "These are tough times for the insurance industry, but we are well positioned to handle them."

Chairman Lord Levene said: "2011 has already been one of the most challenging years on record for the insurance industry with major natural catastrophes devastating communities in Australia, New Zealand, Japan and the US. Lloyd's ability to pay billions in claims to help these communities rebuild is unquestioned and the fact that we have managed to do so without any call on our central capital reserves is testament to the market's exposure management."

The £1.2bn of predicted claims from the Japanese tsunami made it the fourth biggest event in history to impact on the London-based market.

Last month, Amlin P.L.C. , the biggest listed insurer operating at Lloyd's, sank to a first-half loss of £192.3 million ($303.6 million), while rivals Catlin Group Ltd. and Hiscox Ltd. unveiled deficits of $201 million and £85.6 million ($135.1 million) respectively.