Lloyd's of London Set for $6.5 Billion Coronavirus Payout
10 Settembre 2020 - 12:54PM
Dow Jones News
By Julie Steinberg
LONDON--Lloyd's of London, the 332-year-old U.K. insurance and
reinsurance market, is set to pay out up to 5 billion pounds,
equivalent to $6.5 billion, in coronavirus-related claims this
year, it said Thursday.
Lloyd's, a marketplace of insurance syndicates, is the latest in
a long list of global insurance entities experiencing contractions
amid a surge of claims this year due to the pandemic. Many insurers
are also facing losses in their investment portfolios from wild
stock markets and falling interest rates, while their solvency
ratios, a measure of financial strength, have fallen since the
start of the crisis.
Lloyd's reported a pretax loss of GBP438 million in the first
half of the year, with Covid-19 claims totalling GBP2.36 billion
after reinsurance recoveries. It had reported a pretax profit of
GBP2.32 billion in the year-earlier period. It warned earlier this
year of tough times to come, both for itself and the industry
broadly.
Despite the losses, Lloyd's said Thursday that its balance sheet
is in a strong position and that it has the wherewithal to
withstand the continuing impacts of the pandemic.
Moody's Investors Service earlier this week changed its outlook
on the global reinsurance sector to negative from stable, saying it
expected profitability at such firms to lag amid
coronavirus-related losses and crimped interest rates.
Write to Julie Steinberg at julie.steinberg@wsj.com
(END) Dow Jones Newswires
September 10, 2020 06:39 ET (10:39 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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