Some of the 62 syndicates in the Lloyd's insurance market could go out of business due to the losses stemming from Hurricane Katrina, rating agency Standard and Poor's (S&P) has warned.
Marcus Rivaldi, an analyst at S&P, said: "Some Lloyd's syndicates may move down [our ratings] scale, thereby implying there is a greater risk that they may cease to trade...[or] they may have to raise capital in order to continue."
He also stressed that the agency was considering cutting the rating for the overall Lloyd's market.
Thor Valdamanis, a Lloyd's America spokesman, said: "It is premature to express a view on the impact of Katrina on individual syndicates since we are still assessing initial loss estimates," but S&P said that 30 of the 62 syndicates would need to be monitored closely.