Baltimore disaster bill may hit record £3.2bn
LLOYD’S of London has warned that the Baltimore bridge disaster is likely to cost billions of pounds – and may be the record for a marine insurance loss.
The destruction of the Francis Scott Key Bridge by a drifting cargo ship has blocked the US port. Experts fear the bill may exceed the cost of the 2012 capsize of the Costa Concordia liner.
The cruise ship was holed on rocks off Tuscany, killing 32 passengers and crew, and losses hit a record £1.2billion.
However global credit ratings agency Morningstar estimates insured losses from Tuesday’s bridge tragedy, in which six people are likely to have died, could range from £1.6billion to £3.2billion.
John Neal, chief executive of Lloyd’s insurance and reinsurance market, said it is working with international partners and US representatives to give support.
He added: “Our thoughts are with those affected by this devastating incident, particularly those who have lost their lives. Our priority in responding to catastrophic events is to convene the insurance industry to support reconstruction and recovery efforts quickly.”
Although the underwriting performance of Lloyd’s marine, aviation and transport insurance market last year was hit by losses from Russia’s war with Ukraine, overall its pre-tax profits rocketed from £124million to £358million.
Lloyd’s said a strong underwriting performance and good investment returns helped drive the improvement.
Its underwriting result – the difference between clients’ premiums and its expenses and claims paid – more than doubled to £5.9billion. Its investment portfolio generated returns of £5.3billion after losses of £3.1billion in 2022.
Price increases of 7% last year offset inflation and policy prices increased for 24 consecutive quarters.
Mr Neal added: “The results we’re reporting are our best in recent history.”