Lloyd’s of London suffers 1 billion pound loss due to natural catastrophes

The Lloyd’s of London insurance market recorded a loss of one billion pounds ($1.32 billion) in 2018 due to major natural catastrophes such as hurricanes and wildfires, it said on Wednesday.

Lloyd’s, which started life in Edward Lloyd’s coffee house in 1688, insures complex risks from oil rigs to footballers’ legs. It houses around 80 member syndicates and its results are an aggregate of its members’ financial performance.

The market suffered a two billion pound loss in 2017.

Major claims totalled 2.9 billion pounds as a result of hurricanes in the United States, a typhoon in Japan and Californian wildfires, Lloyd’s said in a statement, compared with 4.5 billion in 2017.

Lloyd’s’ combined ratio, a measure of underwriting profitability, strengthened to 104.5 per cent from 114 per cent. A level above 100 per cent indicates a loss.

Lloyd’s last year introduced more stringent underwriting requirements of its members.

“We expect these actions to deliver progressive performance improvement across the market beginning in 2019,” Chief Executive, John Neal, said in a statement.

Lloyd’s announced an action plan on Tuesday in response to a Bloomberg News report of sexual harassment in the market.

It will add two women to its nominations committee and made a commitment to hear the accounts of the women in the Bloomberg article in a safe and confidential space.

It has also introduced a number of policies, including sanctions and potential life bans on entering its City tower.

(Reuters/NAN)