£5bn bill for Covid-19

LLOYD’S of london is expecting to pay out billions in claims sparked by Covid-19, as the cost of the pandemic surpassed many other major disasters.

The insurance market said it believes that up to £5bn will be claimed on a gross basis, helping to push the company into a loss for the first half of the financial year. The crisis will cost more than three disastrous hurricanes in 2017, which cost lloyd’s £3.7bn, and the September 11 attacks in New york, after which lloyd’s paid out £3.6bn.

lloyd’s said it lost about £400m before tax in the first six months of the year.

‘The first half of 2020 has been an exceptionally challenging period,’ said chief executive John Neal.