The level of loss resulting from Hurricane Katrina should be containable within earnings and is unlikely to represent a material issue for the Lloyd's Central Fund, according to a report released by Moody's.
The ratings agency also says it does not expect significant rating activity for individual Lloyd's syndicates as a result of Hurricane Katrina.
Robert Smith, a senior Moody's analyst, said: "Hurricane Katrina is exactly the type of event that Lloyd's prepares for."
Moody's still expects the London-based insurance market to record a profit of 2% of capacity for 2005, provided it is not affected by further major catastrophes, and assuming that the insured loss does not increase significantly from the level disclosed by Lloyd's.
Moody's said there was currently consensus among the underwriting community in London that Katrina would be a market-changing event, reversing the downward trend in rates and extending the hard market.
