Fires, floods and hurricanes meant trouble for Lloyd's

A period of expensive natural disasters plunged the insurance market into a £2 billion loss, its first in six years

Insurance giants, Lloyd’s, reported a pre-tax loss of £2 billion for the year to December 31, after it paid out £4.5 billion in compensation to victims of a spate of natural disasters. This was in comparison with a profit of £2.1 billion in 2016.




The tale is long and devastating. Hurricane Harvey ripped into Texas in late August, followed swiftly by Irma, which hit the Florida peninsula, and then Maria, which left devastation in its wake in Puerto Rico. There were also devastating wildfires in California, an earthquake in Mexico, monsoon flooding in Bangladesh and a mudslide in Colombia.



Inga Beale, who took over the Lloyd’s market four years ago, referred to 2017 as an “exceptionally difficult year” for the insurance market. She added that the organisation will now focus on a cost-cutting and efficiency drive.