Disasters slam Lloyd's of London's profits

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Disasters slam Lloyd's of London's profits

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Lloyd’s of London’s profits have been swallowed up and washed away by an unprecedented series of natural disasters.

The insurance market’s first-half loss was the equivalent of almost eight hundred million euros.

The Japanese earthquake and tsunami led to the biggest payouts.

There were a total of 7.6 billion euros worth of claims making it the costliest six-month period in Lloyd’s more than 300 year history.

Lloyd’s said it was financially strong enough to cope with a potential further spate of big claims, with central capital reserves – used in the event that individual insurance syndicates are unable to meet their obligations.

Lloyd’s finance director Luke Savage said the outcome for 2011 as a whole will depend on whether the

June-to-November US hurricane season inflicts further losses on the industry, and on how Lloyd’s investment portfolio performs as the euro zone sovereign debt crisis continues to unsettle financial markets.

This year’s hurricane season has been the most active on record, but with the exception of Hurricane Irene, expected to cause an insured loss of up to $5.5 billion, no major storm has hit the US mainland.