Page last updated at 08:24 GMT, Tuesday, 21 October 2008 09:24 UK

Hurricanes to cost Lloyd's 1.3bn

Hurricane Gustav storm damage
The hurricanes caused widespread damage

Insurance market Lloyd's of London has said it estimates the damage caused by Hurricanes Gustav and Ike will cost it 1.3bn ($2.34bn) in claims.

The two hurricanes caused widespread damage when they hit the Caribbean and the US last month.

Lloyd's said analysts had estimated the two hurricanes would cost the insurance industry as a whole $20-25bn.

However, Lloyd's added it would not be possible for some time to have a precise view of the ultimate cost.

"While industry losses from Hurricanes Gustav and Ike are likely to exceed initial forecasts, the claims to Lloyd's will be manageable and in the normal course of business," said Lloyd's chief executive Richard Ward.

"Clearly these hurricanes have had a significant impact on the coastal and inland communities of the southern US states and our priority remains assessing and settling claims as quickly as possible to help rebuild the area," he added.

Last month, Lloyd's reported a fall in profits for the first six months of 2008. Profits fell to 949m, down from 1.8bn in 2007, as a result of falling investment income and rising claims costs.



Print Sponsor


SEE ALSO
Claims costs hit insurer Lloyd's
25 Sep 08 |  Business
Claims dip boosts insurer Lloyd's
03 Apr 08 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC iD

Sign in

BBC navigation

Copyright © 2020 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific