Lloyd’s Estimates Thai Flood Losses at $2.2 Billion

Lloyd’s announced that it is estimating its overall net claims from the flooding in Thailand last year to be in the $2.2 billion range. The figure is based on an industry loss estimate of between $15 and $20 billion.

The actual “net claims from these events may vary from this preliminary estimate,” Lloyd’s said. The announcement also stressed that “these events are not expected to give rise to either any material claims on the central fund or to any material change in the overall level of capitalization of the market.”

Lloyd’s Chief Executive Richard Ward added: “As ever, our priority remains to assess and settle valid claims as swiftly as we can so the community and businesses in Thailand recover.

‘He also stressed that the “Lloyd’s market is as well capitalized as it has ever been. While claims from Thailand could still evolve over time, paying these claims is within the normal course of business for Lloyd’s.’

Lloyd’s preliminary estimates draw on market share analysis, a review of contracts in place and estimates from each syndicate.

Source: Lloyd’s of London