Menu
08/10/2001
Lloyd’s gross insurance exposure may run to £7bn
The latest figures available estimate that the London Insurance markets may be facing £7 billion ($10 billion) in gross liabilities as a result of the terrorist attacks on the US.
According to rating agency Fitch, the net loss as reported by Lloyd’s was £1.3 billion, but the final net figure may be closer to £1.7 billion.
Fitch cited figures from the Northridge Earthquake in 1994, which indicated that final gross costs arising from such incidents were usually underestimated.
Initial estimates one month after the incident put the Northridge losses at $2.5 billion, but the final figure was closer to $12.5 billion – five times higher than the initial estimate.
Fitch warned that given the magnitude of the World Trade Centre loss, the bulk of which would be borne by re-insurers, insolvencies could not be ruled out. According to Fitch, because Lloyd’s must hold 100 per cent of gross claims for US reinsurance business in trust, Lloyd’s itself mach face liquidity problems. However, this was denied by Lloyds who are understood to hold in excess of £4 billion in a reinsurance trust fund.
Lloyd’s recently increased its insurance premium levy imposed on its underwriting syndicates. This fund is used to pay claims should syndicates be unable to meet their liabilities.
The WTC attack resulted on the largest single day insurance loss in Lloyds 300-year history. (SP)
According to rating agency Fitch, the net loss as reported by Lloyd’s was £1.3 billion, but the final net figure may be closer to £1.7 billion.
Fitch cited figures from the Northridge Earthquake in 1994, which indicated that final gross costs arising from such incidents were usually underestimated.
Initial estimates one month after the incident put the Northridge losses at $2.5 billion, but the final figure was closer to $12.5 billion – five times higher than the initial estimate.
Fitch warned that given the magnitude of the World Trade Centre loss, the bulk of which would be borne by re-insurers, insolvencies could not be ruled out. According to Fitch, because Lloyd’s must hold 100 per cent of gross claims for US reinsurance business in trust, Lloyd’s itself mach face liquidity problems. However, this was denied by Lloyds who are understood to hold in excess of £4 billion in a reinsurance trust fund.
Lloyd’s recently increased its insurance premium levy imposed on its underwriting syndicates. This fund is used to pay claims should syndicates be unable to meet their liabilities.
The WTC attack resulted on the largest single day insurance loss in Lloyds 300-year history. (SP)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
30 January 2012
NI Businesses Urged To Avail Of Free IT Solutions
Businesses in Northern Ireland have been encouraged to take advantage of the significant cost-savings on offer through incorporating aspects of over 475,000 free open source software projects into their IT processes.
NI Businesses Urged To Avail Of Free IT Solutions
Businesses in Northern Ireland have been encouraged to take advantage of the significant cost-savings on offer through incorporating aspects of over 475,000 free open source software projects into their IT processes.
31 August 2001
Hitachi confirms global jobs cuts
Electronics manufacturer, Hitachi has confirmed it will slash its global workforce by 14,700. While some 4,500 of the job losses are likely to be take place outside Japan, the firm said that the cuts, which amount to more than four per cent of Hitachi's staff, will all be made before March next year.
Hitachi confirms global jobs cuts
Electronics manufacturer, Hitachi has confirmed it will slash its global workforce by 14,700. While some 4,500 of the job losses are likely to be take place outside Japan, the firm said that the cuts, which amount to more than four per cent of Hitachi's staff, will all be made before March next year.
16 October 2001
BT abandons joint venture with AT&T
BT has announced that it is to hang up on its loss making $10 billion joint venture with US telecoms giant AT&T. The agreement to end the joint international telecoms business will see the accounts and networks set up under the Concert venture returned into the hands of parent companies BT and AT&T.
BT abandons joint venture with AT&T
BT has announced that it is to hang up on its loss making $10 billion joint venture with US telecoms giant AT&T. The agreement to end the joint international telecoms business will see the accounts and networks set up under the Concert venture returned into the hands of parent companies BT and AT&T.
30 August 2001
Lloyd’s of London project £2bn loss
The world’s oldest insurer, Lloyd's of London has been forced to increase its projected loss for the last two years to £2 billion. A combination of the dot.com collapse and a Brazilian oil rig disaster have combined to squeeze the UK-based insurer.
Lloyd’s of London project £2bn loss
The world’s oldest insurer, Lloyd's of London has been forced to increase its projected loss for the last two years to £2 billion. A combination of the dot.com collapse and a Brazilian oil rig disaster have combined to squeeze the UK-based insurer.
21 June 2012
Belfast Firm Is Fit For Business In Dubai
Diet Express in Belfast has teamed up with Fitness First in Dubai to help its gym members control their diets, lose weight and manage diabetes and other potentially life-threatening conditions.
Belfast Firm Is Fit For Business In Dubai
Diet Express in Belfast has teamed up with Fitness First in Dubai to help its gym members control their diets, lose weight and manage diabetes and other potentially life-threatening conditions.
-
Northern Ireland WeatherThis Evening and Tonight:It will be cloudy with a spell of heavy rain pushing south through late evening and the early hours, soon followed by some clear spells. Minimum temperature 6 °C.
