Lloyd’s reports US$2.34 billion in estimated net claims for Gustav and Ike

Lloyd’s is expected to face net claims of US$2.34 billion for Hurricanes Gustav and Ike, representing both onshore and offshore claims, according to a provisional estimate.
This is in line with analysts’ estimates of an aggregate US$20-25 billion industry loss, Lloyd’s notes in a press release announcing its projected losses.
Based on current estimates, there will be a negligible impact on Lloyd’s capital and no Central Fund exposure, the company says.
Industry losses from Hurricanes Gustav and Ike are likely to exceed initial forecasts, but claims to Lloyd’s will be manageable and in the normal course of business, said Lloyd’s CEO Richard Ward.
“These exposures are in line with expectations and reflect our strong competitive position in the lines of business affected,” Ward says. “The market is well-positioned to respond to these claims and our strength continues to be underpinned by the effective risk management techniques in place across the market, our strongest ever Central Fund and stable ratings.”
It will not be possible, for some time, to have a precise view of the ultimate insured loss as the full extent of the damage is still unknown and the loss is ongoing, Lloyd’s added.