Lloyd's has provided a provisional estimate of the market's net loss from Hurricane Katrina, putting the figure at approximately £1.4bn ($2.55bn).
The financial impact of Hurricane Katrina on Lloyd's is consistent with its Realistic Disaster Scenario model for the Gulf of Mexico. In addition, the estimated loss is comparable with the impact of the four US windstorms in 2004, which resulted in a net loss to the market of £1.3bn ($2.37bn).
Lloyd's stressed that it will not be possible, for some time, to have a precise view of the ultimate insured loss due to the complex nature of the catastrophe. Lloyd's wrote to all 44 managing agents asking for an assessment of the financial impact on syndicates. The provisional estimate is based on an initial analysis of those assessments.
Based on current information, Lloyd's believes any impact on the Central Fund would be immaterial, and there is nothing to suggest that any syndicate would not be able to trade forwards as a direct result of Hurricane Katrina.
