Thai floods to cost Lloyd’s £1.4bn

Lloyd’s estimates that claims from last year’s flooding in Thailand will cost it $2.2bn (£1.4bn).

The estimate is consistent with an industry-wide loss estimate of between $15bn and $20bn. It is based on market share analysis, a review of contracts in place and estimates from each syndicate.

Lloyd’s chief executive Richard Ward said in a statement that the market’s priority is paying valid claims as quickly as possible.

“The Lloyd’s market is as well capitalised as it has ever been,” Ward said. “While claims from Thailand could still evolve over time, paying these claims is within the normal course of business for Lloyd’s.”

Lloyd’s warned that as additional information emerges, actual claims could vary from its preliminary estimate. It added, however, that it does not expect the event to result in material claims on the Central Fund – the central pool of assets backing syndicates’ underwriting – or any material change to the market’s overall level of capitalisation.