LONDON (Reuters) - The Lloyd’s of London LOL.UL 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 Ward said.
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 October 29, is expected to cost the insurance industry up to $25 billion, making it the second-costliest storm after hurricane Katrina in 2005.
Reporting by Myles Neligan; editing by Sinead Cruise