Lloyd's faces losses of £1bn, Chatset says
Thursday 02 February 1995
However, this loss, which is a relatively modest one by Lloyd's recent standards, will be inflated by an increase in the losses run up on business written before 1992.
Chatset says that this figure is hard to predict with any accuracy until later in the year. However, the firm says that the market is expecting the figure to be close £750m, although it could be as high as £2bn.
Chatset also casts doubt over whether Lloyd's will report a profit in the next two years. The 1993 and 1994 years of account for Lloyd's will make pure year profits, but these profits could be wiped out by continuing deterioration in earlier business forthe market.
Chatset expects 1993 to produce a pure year profit of £800m for Lloyd's, while it predicts that the market will make about £500m for 1994.
Much of the earlier year business producing claims at Lloyd's is third-party general liability insurance written in the US in the decade after the Second World War.
This has produced a huge stream of claims from workers in the asbestos industry and in industries, such as construction, that used asbestos.
One of the main factors which has been affecting the predicted results for Lloyd's is the poor performance of the investment markets, in particular the bond market. As a consequence of this poor performance, investment income for the market is down.
Charles Sturge, a director of Chatset, said: "If the loss is at the upper end of the range it would be very serious indeed for Lloyd's.
"Names could not stand another hit of £2bn," he said.
Mr Sturge said that unless a settlement is reached to the litigation that continues to dog the market, Lloyd's could become insolvent and have to cease trading.
Malaysia Airlines plane crash exposes alarming flaw in airline security: over one billion flights made last year without stolen-passport check
International Women's Day 2014: The shocking statistics that show why it is still so important
Teacher shows sex tape featuring herself to pupils during class by mistake
Swarm of killer bees sting woman 1,000 times
Dead woman's body lay decomposing in garage for six years before she was found
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
Exclusive: Impact of immigrants on British workers ‘negligible’
Vince Cable: Teachers 'know absolutely nothing' about the world of work
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
- 1 International Women's Day 2014: The shocking statistics that show why it is still so important
- 2 Australian man Rod Sommerville reacts to bite from deadly snake by reaching for cold beer
- 3 Teacher shows sex tape featuring herself to pupils during class by mistake
- 4 Singapore sting: Sky-high prices are pushing locals to the edge of affordability
- 5 Swarm of killer bees sting woman 1,000 times
iJobs Money & Business
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£55000 - £70000 per annum + benefits: Pro-Recruitment Group: In-House Corporat...
£80000 - £100000 per annum + benefits: Pro-Recruitment Group: In-House Opportu...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...