LONDON Dec 19 The Lloyd's of London
insurance market flagged claims of up to $2.5 billion from
superstorm Sandy and said it would be able to pay out without
suffering financial stress.
Lloyd's, a collection of about 80 competing insurance
syndicates, expects total net claims of between $2 billion and
$2.5 billion, it said on Wednesday.
"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," Chief Executive Richard
There will be no impact on Lloyd's central fund, a reserve
used to meet claims if any individual syndicate finds itself
unable to pay, Lloyd's added.
Sandy, a 1,000 mile wide storm that killed 132 as it swept
through the north-eastern United States on Oct. 29, is expected
to cost the insurance industry up to $25 billion, making it the
second-costliest storm after hurricane Katrina in 2005.