Quakes and floods will cost Lloyd's £2.3bn

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The world's largest insurance market, Lloyd's of London, has revealed the recent earthquakes in Japan and New Zealand, and floods in Australia could cost its members $3.8bn (£2.3bn).

The Japanese earthquake and tsunami alone will result in net claims before tax of $1.95bn, it said yesterday, making it the fourth most expensive natural disaster in the market's history, behind hurricanes Katrina and Ike, and the terrorist attacks on the United States on 11 September 2001 .

Lloyd's published the estimated losses after its 87 syndicates, which underwrite insurance at the market, submitted their maximum exposure to the three events. But Lloyd's said the claims would not have a "material" impact on its capital and it does not expect any exposure to its central fund, the reserves kept for bailouts, either individually or collectively.