Lloyds makes first loss in six years
Lloyd’s of London has announced that it posted its first loss in six years in 2017, after the numerous destructive natural disaster events that took place throughout the year.
The insurance market announced that it had suffered pre-tax losses of £2 billion – a stark contrast to the £2.1-billion profit it announced for 2016. Around £18.3 billion was paid in claims in the last year, £4.5 billion of which was for natural disasters, Lloyd’s said.
Several other large insurers have posted losses for 2017, largely due to natural disasters. Hurricanes devastated parts of the US and Caribbean – such as Hurricane Irma, which triggered an underwriting loss of £3.4 billion for Lloyds – whilst wildfires in California and earthquakes in Mexico also contributed to the losses.
Lloyd’s has said that it has been able to meet the costs without any ‘significant impact’ on its total resources of £27.6 billion.
“Although 2017 has been an incredibly tough year for the Lloyd’s market, our excellent capital strength demonstrates that Lloyd’s remains in robust financial shape,” said Inga Beale, Lloyd’s CEO. “With a leadership team actively addressing the challenges the Lloyd’s market is faced with, I’m confident that we go into 2018 in a strong and secure position.”