The Lloyd’s of London insurance market said this morning that Hurricane Sandy claims are between $2bn and $2.5bn (£1.25 and £1.55bn).
Lloyd’s said that it would be able to pay out with “minimal impact” on its members’ capital, and it wouldn’t affect the central fund – a reserve fund used to meet claims if a syndicate finds itself unable to pay.
Chief executive Richard Ward said this morning: “The Lloyd's insurance market remains financially strong and, while claims from this storm could still evolve over time, the market's total exposure is well within the worst case scenarios we model and prepare for.”
Sandy, a 1,000 mile wide storm that killed 132 as it swept through the north-eastern US on 29 October, is expected to cost the insurance industry up to $25bn, making it the second-costliest storm after hurricane Katrina in 2005.
City A.M. Reporter