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.
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