Lloyd’s sees hurricane Ian loss as $2.3bn to $3bn, based on syndicate data

Based on third-quarter data provided by syndicates operating there, Lloyd’s has estimated that hurricane Ian losses to the market will total between $2.3 billion and $3 billion, on a net basis.

Lloyd’s said today that its net market share of the total industry loss from hurricane Ian is expected to be between 3% and 5%.

The market explained that this estimate falls within its range of modelled outcomes for an event like Ian, adding that this will have no impact on Lloyd’s solvency position.

Burkhard Keese, Chief Operating and Financial Officer, Lloyd’s, commented, “Our thoughts are first and foremost with all those affected by the devastating events that have occurred this year, and as ever Lloyd’s stands ready to support its customers through these difficult times.

“We are providing a claims estimate figure for Hurricane Ian outside of our usual financial reporting cycle to provide transparency to the market and will report our 2022 year-end financial results in March 2023.”

The data is unaudited, Lloyd’s said, and the market’s capital and solvency positions remain strong, with net resources of £36.5 billion as of the half-year point of 2022.

Lloyd’s estimate is net of reinsurance, so the gross impact to its syndicates from hurricane Ian can naturally be assumed to be higher, with recoveries from their reinsurance partners set to support their payment of claims.

Prior to this Lloyd’s announcement, our sister publication Reinsurance News reported that analysts at JP Morgan said disclosed losses related to Hurricane Ian from the world’s major re/insurers stood at roughly $20 billion, with the largest costs being seen at Berkshire Hathaway ($3.4bn) and Citizens Property Insurance ($2.6bn).