Insurers face huge Harvey losses

SHARES in Lloyd’s of London insurers Lancashire Holdings, Hiscox and Beazley slipped yesterday after analysts warned of tens of millions of pounds in losses from Hurricane Harvey.

The tropical storm, the most powerful hurricane to strike Texas in more than 50 years with a year’s worth of rain falling, is set to peak later this week with 30,000 people expected to be left homeless. Shares in Lancashire fell by 3.5pc to 670p, while Hiscox dropped 2.3pc to £12.56 and Beazley by 2.8pc to 506p after Panmure Gordon analyst Barrie Cornes said Lancashire faced a £200m hit from the hurricane and the others £100m each.

The total cost of the damage could be as much as $50bn (£39bn), he said, while Peel Hunt analyst Andreas van Embden forecast losses of up to $12bn.

David Havens, an Imperial Capital analyst, told Bloomberg that the damage could even surpass £100bn, although insurers are not expected to foot all of that bill due to the US National Flood Insurance Programme.

“Whilst Harvey is a major