Pacific Rim catastrophes drive Lloyd’s loss

Catastrophes claims from events in Australia, New Zealand, Thailand and Japan have resulted in Lloyd’s posting a net loss of £516 million for 2011.

Total net claims for 2011 amounted to £12.9 billion, including £4.6 billion of catastrophe claims. This made it the largest catastrophe claims year on record for the 324-year-old insurance market.

The chairman of Lloyd’s, John Nelson, said that the market had emerged from its largest catastrophe year ever in good shape.

“Our strong capital position is unchanged and we were able to make a profit in the second half of the year despite the floods in Thailand and continuing low investment returns,” he said.

“2012 remains challenging for insurers with tough economic conditions globally. It is vital that the market continues to take a disciplined approach to underwriting.”