Rating agency Standard and Poor's has warned that the collapse of energy giant Enron could cost insurers more than £2.5bn.
The largest liquidation in corporate history has highlighted a general deteriorating of credit quality across "numerous industries", S&P said.
Lloyd's, which is already facing losses of upto £1.9bn after the World Trade Centre atrocity, could see even more losses as a result of Enron's demise, according to reports.
