From the April 2-9, 2012 issue of National Underwriter Property & Casualty • Subscribe!

Lloyd’s Posts $800M Loss in 2011 Due to Cats

Lloyd’s says record catastrophe losses led to a loss of more than $800 million for 2011 as the specialty-insurance market experienced the largest catastrophe-claims year in its history.

In a statement, London-based Lloyd’s says it incurred total net claims of $20.6 billion last year, including $7.4 billion in catastrophe claims. Lloyd’s calls this the “largest catastrophe-claims year on record for the 324-year-old insurance market.”

Lloyd’s notes that the year includes flooding in Australia in January, the second earthquake in New Zealand in February, the Japanese earthquake and tsunami in March, and flooding in Thailand over the summer.

To put its losses in context, Lloyd’s referred to a report from Aon Benfield that estimates catastrophe losses for the insurance industry in 2011 amounted to $107 billion.

“Make no mistake, 2011 was a difficult year for the insurance industry,” Lloyd’s CEO Richard Ward says in a statement. “Given the scale of the claims, a loss is unsurprising, but it reflects what we’re here to do—help communities and businesses rebuild after a disaster.”

He adds that it was disappointing that with the “exceptional level of catastrophes,” insurance “rates have not responded more positively.” He calls on the industry to show more discipline on the issue of pricing.

Lloyd’s Chairman John Nelson says 2012 will remain a challenge in the face of tough economic headwinds, and he repeated Ward’s call for pricing discipline.

Lloyd’s reports a loss before tax of £516 million ($820 million at the current exchange rate) compared to a profit of £2.2 billion ($3.5 billion) for 2010.

The combined ratio deteriorated 13.5 points to 106.8, which Lloyd’s says is in line with estimates.

Comments

Resource Center

View All »

Contractors General Liability Coverage 102

What is a prior work exclusion? Which option is right for my client? Why do...

Sign up today to get a 50% matching credit -...

Insurance marketing sometimes seems like it's a game of swings and misses, but we're here...

Guide: 5 Steps to Selling Cyber

Cyber risk and data security is on the agenda of every business owner and executive....

Citation Correlation

Do rigger and signalperson qualifications correlate with the cause of crane and rigging accidents? ...

Complete Guide to Electronic Signatures in Property & Casualty Insurance...

In property and casualty insurance, closing new business quickly is key. Learn how to leverage...

INSTANT ACCESS: Complimentary Sales Closer Questionnaires

Help property owners or managers compare your commercial residential property insurance coverage vs. the competition....

Determining Vacant Property Perils and Valuations

Are your clients fully covered for Vacant Properties? In this economic climate, your insureds may...

Risk Management for Law Firms

This package of 3 concise risk management articles offers straightforward content and practical suggestions law...

Guide: Top 15 E&O Risks-And How To Avoid Them

Accidents happen. But when it's an errors and omissions oversight, that accident can open your...

We'll Show You How to Reach Your Sales Goals

Whether you work alone or have a team of agents working for you, we can...

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.