Lloyd's said expectations earlier this year that it would end 2005 on a comfortably profitable note have been diminished by the three catastrophic hurricanes that hit the United States.

The Lloyd's market reported today that it estimates the total loss from Hurricanes Katrina, Rita and Wilma could amount to ?2.9 billion ($5 billion U.S.). It now estimates net loss for Katrina at ?1.9 billion ($3.42 billion); Rita net loss at ?535 million ($947 million); and Wilma at ?483 million ($855 million).

Winifred A. Baker, president and director of Lloyd's America Inc., said in the first half of the year, the market expected to make a substantial profit, and even after Katrina felt it could still make a profit. However, after Rita and Wilma, the market believes that if there are no more catastrophes through the end of this year, it could see a profit, though very small.

"Three large hurricanes have taken their toll," observed Ms. Baker. "We are in the business of insuring risk, and we won't know our results until we close our books on Dec. 31."

Lloyd's said the market remains financially strong and expects to meet all of its liabilities with immaterial impact on its central fund. It added that there is nothing to suggest any syndicate would be unable to continue as a result of the hurricanes. The syndicates will be supported by capital from members of over ?9 billion ($15.5 billion) in 2006, an increase of ?500 million ($863 million) from what was originally planned for the year.

Ms. Baker said that because of the soft market pricing, there were plans to decrease capacity, but the storms have altered the market cycle. Instead, capacity will be increased by 7 percent, with writing capacity of ?14.7 billion ($25 billion).

The U.S. market, Ms. Baker said, is very stable and in good shape going into next year.

"There are no issues in the U.S.," she said.