14 May 2011

Lloyd's facing £2.4 billion bill

6:21 am on 14 May 2011

Recent natural disasters may cost Lloyd's of London about £2.4 billion.

Claims from the Japanese earthquake are estimated at £1.22 billion, while the New Zealand earthquake and flooding in Australia are put at £750 million and £406 million.

The impact of the tornadoes in the United States is yet to be assessed, but Lloyd's said that all the disasters will mean insurance rates rising.

Lloyd's said its financial health meant that meeting claims was not an issue.

Chief executive Richard Ward said the market's total exposure was well within its worst case scenarios.

Last month, Lloyd's reported pre-tax profits of $3.5 billionn for 2010, down more than 40% on 2009.