Lloyd’s says the cost of storms will hit £3.3bn

INSURANCE MARKET Lloyd’s of London has begun paying “significant amounts” to those affected by storms Harvey and Irma, and is estimating its total costs for the natural disasters to come in at £3.3bn.

In a half-year report, Lloyd’s said that it has paid out big figures in Texas and Florida, adding that it has been working hard on responding to claims.

Parts of the Caribbean and US have been devastated by the hurricanes, with insurers expected to stomach a £150bn hit.

Lloyd’s said: “Windstorms Harvey and Irma made landfall on the United States and the Caribbean towards the end of August and early September 2017 respectively.

“These events have caused significant damage in the states of Texas and Florida in the United States and to a number of islands in the Caribbean.

“It is currently too early to reliably estimate the financial impact of these loss events to the Lloyd’s market given the level of uncertainty at this stage of development.”

It added that losses linked to windstorm Maria, which made landfall on a number of Caribbean islands this month, have not yet been quantified.

Lloyd’s made the announcement alongside its interim results, which do not take into account the recent storms.

Pre-tax profits slid from £1.46bn to £1.22bn in the six months to June 30, but gross written premiums increased by 16 per cent to £18.9bn despite continuing pressure on pricing from excess capital and low interest rates.

Lloyd’s CEO Inga Beale said: “These results highlight the continued strength of the Lloyd’s market, but they do reflect the challenging conditions that have shaped the sector over recent years.”