Lloyd’s confident exposure to Sandy won’t harm finances
Lloyd’s has pegged claims from Superstorm Sandy at between $2bn (£1.25bn) and $2.5bn (£1.55bn) but does not expect any strain on its financial buffers.
The market said this morning that it expected “minimal impact on Lloyd’s member capital” and “no impact on the central fund”. The fund is used to meet claims if any individual syndicate finds itself unable to pay.
But it warned that as additional information emerged, its actual ultimate net claims from the event could vary from the preliminary estimate.
It added the claims estimate is consistent with insurance industry losses of between $20bn and $25bn.
Lloyd’s chief executive Richard Ward said: “As always, our priority is to pay valid claims as quickly as possible and help the communities in North America and the Caribbean affected by Sandy get back on their feet.
“The Lloyd’s insurance market remains financially strong and, while claims from this storm could still evolve over time, the market’s total exposure is well within the worst case scenarios we model and prepare for.”
Yesterday, a clutch of individual Lloyd’s insurers revealed estimates for their Sandy losses.
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